OECD Tourism Trends

OECD Tourism Trends
and Policies 2018

OECD Tourism Trends
and Policies
2018
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Please cite this publication as:

OECD (2018), OECD Tourism Trends and Policies 2018, OECD Publishing, Paris.
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FOREWORD
Foreword
T ourism is one of the largest and fastest growing sectors in the world economy. It plays a key role
in job creation, export revenue and domestic value added, and directly contributes, on average, 4.2%
of GDP, 6.9% of employment and 21.7% of service exports in OECD countries. Globally, international
tourist arrivals grew to over 1.2 billion in 2016, with arrivals to OECD countries accounting for just
over half and matching the global growth rate of 3.9% as compared to 2015.
OECD Tourism Trends and Policies 2018 focuses on key policy and governance reforms in
tourism and provides a global perspective with the inclusion of 49 OECD and partner countries. As
always, it is a rich source of data on domestic, inbound and outbound tourism, and on the size of the
tourism economy, and provides a clear picture of new policies designed to improve destination
competitiveness.
With the tourism economy evolving rapidly, major long-term trends, such as changing
demographics, evolving demand, digitalisation, and climate change, present new opportunities and
challenges. As such, OECD Tourism Trends and Policies 2018 explores the impacts and relevance
of megatrends for tourism to 2040. It underlines the need for countries to develop strategic
approaches to adapt in an increasingly dynamic environment, as well as modernise regulatory and
legislative frameworks, building on broad stakeholder engagement and taking account of new and
innovative business approaches to service delivery.
This report also examines the need for a shift to investment and financing practices that
better support sustainable tourism development. It particularly highlights that governments can
promote investment and financing for sustainable tourism development by encouraging the uptake
of green financing instruments, and by incorporating environmental and sustainability criteria
into public financing and investment supports. Policies are also needed to better co-ordinate
actions across government, and encourage more responsible business practices through the
integration of environmental and social criteria into tourism policies and programmes. It is
therefore essential that government, industry and civil society collaborate in order to take work
forward in these areas.
Many of these policy issues were discussed at the 2017 OECD High Level Meeting on Tourism,
where 45 member countries and partner economies endorsed the Policy Statement, Tourism Policies
for Sustainable and Inclusive Growth. The Policy Statement recognises that tourism has an
important role to play in the transition to a green economy and that an in-depth analysis of
megatrends can help policymakers to bring currently unforeseen and emerging issues onto the
strategic policy agenda. It highlights that a shift to more coherent and comprehensive approaches to
tourism policy development will help reframe tourism growth to better spread the benefits, address
inequalities, and improve the resilience of economies.
OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 3

FOREWORD
I would like to thank the OECD Tourism Committee for their work in preparing OECD Tourism
Trends and Policies 2018, in partnership with the European Union. This publication remains an
international reference and benchmark on how effectively countries are supporting sustainable and
inclusive tourism growth.
Angel Gurría
OECD Secretary-General
4 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

ACKNOWLEDGEMENTS
Acknowledgements
T his report presents the 2018 edition of the OECD Tourism Trends and Policies publication.
It is prepared by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities (CFE), led
by Lamia Kamal-Chaoui, Director.
OECD Tourism Trends and Policies 2018 highlights good practices and key policy and
governance reforms in tourism, providing a global perspective with the inclusion of
49 OECD and partner countries. The report is part of the programme of work of the OECD
Tourism Committee, and is undertaken with the cooperation of the European Union.* It is
a rich source of data on domestic, inbound and outbound tourism, and on the size of the
tourism economy, and provides a clear picture of new policies designed to improve
destination competitiveness.
The report benefitted from significant contributions, feedback and guidance from
policy makers and statisticians from OECD member countries and partner economies. It
also benefited from contributions and feedback from industry associations and inter-
governmental organisations, including the Alliance for Excellency in Tourism (EXCELTUR),
European Tourism Association (ETOA), European Travel Commission (ETC), International
Air Transport Association (IATA), International Federation on Ageing (IFA), International
Union of Railways (UIC), UN Educational, Scientific and Cultural Organization (UNESCO),
UN Environment, and UN World Tourism Organization (UNWTO).
The report was coordinated and edited by Peter Haxton, Policy Analyst, under the
supervision of Alain Dupeyras, Head of the Regional Development and Tourism Division
(CFE). He was supported by Jane Stacey, Head of the Tourism Unit, and Taekyeong Jung, Policy
Analyst, who undertook substantial drafting and editing. Laetitia Reille, Statistician,
managed the statistical database and developed country statistical profiles and synthesis
tables. Anna Bolengo, Junior Consultant, assisted with the coordination of written inputs
from a variety of sources, and Charity Kome provided administrative support. The statistical
component of the report is available via the OECD’s statistical online platform – OECD.Stat.
External experts who drafted material included Richard Denman, Jackie Denman and
Chris Evans, from The Tourism Company (Chapter 1 and country profiles). Chapter 2 was
drafted by Sunil Johal, Jordann Thirgood, and Sara Ditta (Mowat Centre), with significant
inputs from the Secretariat. Chapter 3 was drafted by Virginia Robano, with significant
inputs from the Secretariat. In addition, the report benefitted from contributions and
feedback provided by OECD colleagues in the Development Centre, Strategic Foresight Unit,
the International Transport Forum, Directorate for Financial and Enterprise Affairs, and CFE.
* This document was produced with the financial assistance of the European Union. The views expressed
herein can in no way be taken to reflect the official opinion of the European Union.

TABLE OF CONTENTS
Table of contents
Policy statement – tourism policies for sustainable and inclusive growth. . . . . . . . . . 11
Reader’s guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Part I
Active policies for tourism
Chapter 1. Tourism trends and policy priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Recent trends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Governance, funding and strategic development . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Development and marketing of distinctive products and destinations . . . . . . . . . . 44
Supporting a competitive, sustainable, and inclusive tourism industry . . . . . . . . . 50
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Chapter 2. Megatrends shaping the future of tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Overview of global megatrends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Megatrends transforming tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Preparing for megatrends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Chapter 3. Towards investment and financing for sustainable tourism. . . . . . . . . . . . . 93

Policies to address the investment gap for sustainable tourism development . . . . 94
Financing sources for sustainable tourism investment . . . . . . . . . . . . . . . . . . . . . . . 97
Challenges for sustainable tourism investment and financing . . . . . . . . . . . . . . . . . 100
Investing in tourism to deliver on the sustainable development goals . . . . . . . . . . 104
Mainstreaming investment and financing for sustainable tourism
development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Part II
OECD country profiles
Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Belgium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

TABLE OF CONTENTS
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
Chile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Denmark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
Estonia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Germany. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Greece . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
Hungary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Iceland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Israel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Korea. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Latvia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
Luxembourg. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
New Zealand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
Portugal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
Slovak Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
Slovenia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
Part III
Partner country profiles
Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304
Bulgaria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
Costa Rica. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
Croatia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325
Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330
Lithuania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335
Malta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340
Morocco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345

TABLE OF CONTENTS
Peru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350
Philippines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355
Romania . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360
Russian Federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365
South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 371
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POLICY STATEMENT – TOURISM POLICIES FOR SUSTAINABLE AND INCLUSIVE GROWTH
Policy statement – tourism policies

for sustainable and inclusive growth
W e, the Ministers and other Representatives of OECD Members, Brazil, Bulgaria, Croatia,
Egypt, Lithuania, Morocco, Peru, the Philippines, Romania, South Africa, the International
Civil Aviation Organization (ICAO), United Nations Environment, the United Nations
Educational, Scientific and Cultural Organization (UNESCO) and the World Tourism
Organisation (UNWTO), met on 2-3 October 2017 on the occasion of the OECD High Level
Meeting on Tourism, under the Chairmanship of Greece.
The purpose of the meeting was to mark the occasion of the 100th meeting of the
Tourism Committee and support the future policy agenda of OECD Member and Partners,
drawing attention to the major advances made in the implementation of effective tourism
policies and programmes, and facilitating open discussions about long term objectives for
sustainable and inclusive tourism growth and development.
Tourism, an engine for economic, sustainable and inclusive growth

Tourism is one of the largest and fastest growing sectors in the world economy and the
economic achievements of tourism are significant. Tourism plays a key role in global economic
activity, job creation, export revenue and domestic value added, and directly contributes on
average in the OECD area 4.1% of GDP, 5.9% of employment, and 21.3%* of service exports.
Despite the obvious opportunities presented by the expected growth trajectory, tourism
faces a range of challenges, in particular: i) the complexity of tourism policy development
due to its cross-cutting, multi- level, and fragmented nature, and competing policy priorities
and budgetary constraints; ii) the impact of external factors on tourism, including macro-
economic conditions, exchange rates, safety and security, and natural disasters; iii) the
global shift to a resource-efficient economy; and iv) the continued transformation of tourism
services linked with emerging technologies and digitalisation of the economy.
Tourism, when built upon broad stakeholder engagement and sustainable development
principles, can contribute to more inclusive growth through the provision of employment
and economic development opportunities in both urban and rural areas, and promote social
integration. Tourism can also raise awareness of cultural and environmental values, and help
finance the protection and management of protected areas, and the preservation of
biological diversity. In recognition of tourism’s potential to advance the universal 2030
Agenda for Sustainable Development, 2017 was declared International Year of Sustainable
Tourism for Development.
* Latest available (2014) when the Policy Statement was adopted on 3 October 2017 – 2016 figures are 4.2%
of GDP, 6.9% of employment, and 21.7% of services exports.

Fostering a whole-of-government policy approach

Moving towards coherent and comprehensive approaches to tourism policy making,
will help countries to reframe tourism growth to better spread the benefits, address
inequalities and improve the resilience of economies. Long-term strategies and policies
focused on promoting quality employment and job creation, skills development,
entrepreneurship, innovation, effective investment, and integrated regional development,
are integral to achieving sustainable and inclusive tourism growth – growth that takes into
account current and future economic, social and environmental impacts, and addresses
the needs of visitors, the industry, the environment and host communities.
Governments should strive to further develop integrated and coherent tourism policy
responses that reflect the circumstances of individual countries and local communities, in
pursuit of shared goals to: i) provide consumers with access to high quality, reliable and safe
tourism experiences; ii) increase productivity in the tourism sector, and particularly among
SMEs; iii) protect, manage and enhance natural and cultural resources; iv) improve
competitiveness; and, v) promote inclusive growth and development within and across
countries.
We agree that for whole-of-government policy responses to be effective, they should,
as appropriate:
● Take into account that tourism is not simply the preserve of central governments, but
encompasses all levels of government, where different mandates and levels of
autonomy apply in different countries;
● Have the support and leadership of policy makers, and adopt a medium- to long-term focus;
● Clearly identify the roles, functions, and interactions of key public and private sector
stakeholders and bring them together in an effective manner;
● Recognise the value of strong dialogue between government, industry, and civil society
(including social partners and academic institutions) in the development, implementation
and monitoring phases;
● Fully consider the trade-offs and complementarities with related policy areas, including
transport, environment, culture, security, education, agriculture, new technologies,
digital transformation, and wider economic policy;
● Identify win-win solutions that deliver stability for industry and promote economic
growth, quality jobs, and prosperity for countries and regions;
● Promote environmentally sustainable growth and support country efforts to meet
national and international commitments;
● Encourage tourism development and the creation of added value based on identified
comparative advantages, diverse high quality tourism offerings, and sustainable
management of natural and cultural resources;
● Use tourism as an engine for inclusive growth, to create quality jobs, business and regional
development opportunities, mitigate the negative impacts on local communities, and
better spread the benefits to all people and territories.
We note that in-depth analyses of megatrends may better enable policy makers to
bring currently unforeseen and emerging issues onto the strategic policy agenda, develop
potential scenarios and policy responses, and better assist public and private actors to
capitalise on opportunities and challenges as they arise.

We agree that in order to develop a forward-looking agenda for the tourism sector,
governments at all levels would benefit from developing, as appropriate, comprehensive
long-term plans. This provides the consistency and certainty the tourism industry requires,
and creates a framework for sustainable and inclusive growth.
We should strive to, when appropriate, mobilise investment, to stimulate growth and
maximise the environmental, economic and social returns generated by tourism. Attracting
tourism investment is a highly competitive process in many countries, given tourism’s
potential to contribute to economic development and need for quality infrastructure,
combined with constrained public budgets and a shortage of investment capital.
We agree that the nature of investment, the infrastructure it creates and the tourism
flows it supports create economic, environmental and social opportunities and challenges.
Active policies and programs can serve to increase the quality and effectiveness of
investment in tourism, in order to generate value, enhance attractiveness and
competitiveness, support SMEs and local development, and manage growing demand in a
sustainable and inclusive manner.
We welcome the OECD work currently underway promoting a whole-of-government
approach to tourism, analysing the policy implications of megatrends for tourism and
examining effective policy approaches to enhance the quality and sustainability of tourism
investment.
Policy areas for consideration for future work by the Tourism Committee
We encourage the Tourism Committee, when planning its future work programme
according to OECD rules and procedures, to consider the following areas:
● Develop a better understanding of tourism’s contribution to well-being and inclusive
growth, and provide governments with coherent policy advice on how to deliver a fairer
distribution of benefits to society as a whole.
● Continue to work with governments and other international organisations to identify
and share effective approaches to delivering integrated policy responses that promote
sustainable and inclusive tourism growth.
● Enhance dialogue with the private sector, to better incorporate the essential perspective
of industry in the development and implementation of tourism policy.
● Support the development of innovative tourism policies that contribute to the 2030
Agenda for Sustainable Development and result in enhanced economic, social and
environmental outcomes.
● Contribute to the development of policies and programs to spread the benefits of
tourism to regions and local communities.
● Work with governments to provide an environment to encourage the creation and growth
of small-scale tourism businesses, stimulate innovative product development, generate
quality employment, support local communities, and integrate SMEs into global value
chains.
● Work with governments and other relevant international organisations to further improve
the quality and accessibility of tourism statistics, strengthen the evidence base, enhance
policy and programme evaluation methodologies, and more effectively demonstrate the
economic value of tourism to decision makers, in a timely and robust manner.

We call on the OECD to continue to provide us with strong evidence, innovative

analysis and advice to assist us in our efforts to develop tourism policies and programs that
are evidence-based and people-centred, and address challenges as they emerge.

OECD Tourism Trends and Policies 2018
© OECD 2018
Reader’s guide
This reader’s guide provides information and methodological notes on the data
sources used in this book: International Recommendations for Tourism Statistics
2008, Tourism Satellite Account: Recommended Methodological Framework 2008
and Balance of Payments and International Investment Position Manual.
15
READER’S GUIDE
T he statistical data contained in this report have been collected and processed using the
OECD Statistical Information System. This system streamlines and strengthens the
production, storage and dissemination of statistics. The data, metadata and sources are
accessible online in a single, consolidated source of tourism statistics http://stats.oecd.org/.
The data closely align with the main methodological references and international
standards used for tourism statistics:
● International Recommendations for Tourism Statistics 2008, UN/UNWTO, http://
unstats.un.org/unsd/publication/SeriesM/seriesm_83rev1e.pdf.
● Tourism Satellite Account: Recommended Methodological Framework 2008, UN/UNWTO/
EUROSTAT/OECD, http://unstats.un.org/unsd/publication/Seriesf/SeriesF_80rev1e.pdf.
● Sixth Edition of the IMF’s Balance of Payments and International Investment Position
Manual 2010, IMF, www.imf.org/external/pubs/ft/bop/2007/bopman6.htm.
This note provides the reader with a methodological summary. For more detailed
information please refer to the above-mentioned methodological tools.
International Recommendations for Tourism Statistics (IRTS)

The International Recommendations on Tourism Statistics (IRTS) provides a common
reference framework for countries to use in the compilation of tourism statistics. It presents
an internally consistent system of definitions, concepts, classifications and indicators, and
provides general guidance with respect to data sources and data compilation methods.
Tourism can be regarded as a social, cultural and economic phenomenon related to
the movement of people outside their usual place of residence. Tourism refers to the
activity of visitors.
A visitor is a traveller taking a trip to a main destination outside his/her usual
environment, for less than a year, for any main purpose (business, leisure or other personal
purpose) other than to be employed in the country or place visited.
A tourist is a visitor if his/her trip includes an overnight stay; otherwise, a visitor is
classified as a same-day visitor (or excursionist).
Three basic forms of tourism can be distinguished:
● Domestic tourism comprises the activities of a resident visitor within the country of
reference.
● Inbound tourism comprises the activities of a non-resident visitor within the country of
reference.
● Outbound tourism comprises the activities of a resident visitor outside the country of
reference.
Measuring the flows of visitors: both arrivals and nights are used to assess the flows
of visitors. A distinction is made between arrivals at borders and in accommodation, and
nights spent in accommodation. As far as overnight tourism is concerned, accommodation

READER’S GUIDE
statistics are an important statistical source of information on domestic and inbound

visitors.
Tourism Satellite Account: Recommended Methodological Framework

(TSA-RMF)
The Tourism Satellite Account (TSA) is a conceptual framework aimed at measuring the
weight of tourism from a macro-economic perspective. It focuses on the description and
measurement of tourism in its different components (domestic, inbound and outbound). It
also highlights the relationship between consumption by visitors and the supply of goods
and services in the economy, principally those from tourism industries. With this
instrument, it is possible to estimate tourism GDP, establish the direct contribution of
tourism to the economy and develop further analyses using the links between the TSA, the
System of National Accounts and the Balance of Payments.
Tourism characteristic products and activities

The TSA reconciles tourism data related with supply and demand. Tourism
measurement and analysis therefore require a classification of products, mainly those
belonging to tourism expenditure, and productive activities that are the basis for defining
tourism industries. Tourism characteristic activities are those that typically produce tourism
characteristic products. A tourism industry represents the grouping of those establishments
whose main activity is the same tourism characteristic activity.
The IRTS 2008 and the TSA-RMF 2008 provide the typology of tourism characteristic
consumption products and activities (tourism industries):
Tourism characteristic consumption products Tourism characteristic activities (tourism industries)
Accommodation services for visitors Accommodation for visitors

Food- and beverage-serving services Food- and beverage-serving activities
Railway passenger transport services Railway passenger transport
Road passenger transport services Road passenger transport
Water passenger transport services Water passenger transport
Air passenger transport services Air passenger transport
Transport equipment rental services Transport equipment rental
Travel agencies and other reservation services Travel agencies and other reservation services activities
Cultural services Cultural activities
Sports and recreational services Sports and recreational activities
Country-specific tourism characteristic goods Retail trade of country-specific tourism characteristic goods
Country-specific tourism characteristic services Other country-specific tourism characteristic activities
Note: For detailed information on the coverage, please see Annexes 2 and 3 of the IRTS 2008.
Internal tourism consumption

The TSA Framework makes a distinction between tourism expenditure and tourism
consumption. Tourism expenditure refers to monetary transactions, whereas tourism
consumption also includes other transactions: services associated with vacation
accommodation on own account, tourism social transfers in kind and other imputed
consumption. However, the latter transactions have to be separately evaluated. Therefore,
the data might refer to either consumption or expenditure, depending on the country.

READER’S GUIDE
Three forms of consumption are distinguished:

● Domestic tourism consumption: the tourism consumption of a resident visitor within
the economy of reference.
● Inbound tourism consumption: the tourism consumption of a non-resident visitor
within the economy of reference.
● Internal tourism consumption: the tourism consumption of both resident and non-resident
visitors within the economy of reference. It is the sum of domestic tourism consumption
and inbound tourism consumption.
Tourism Direct Gross Domestic Product and other aggregates

The Gross Domestic Product (GDP) of an economy is defined as the sum of the gross
value added generated by all industries. Tourism GDP corresponds to the part of GDP
generated by all industries in response to internal tourism consumption. A further
distinction must be made between direct tourism GDP and indirect tourism GDP. Put simply,
tourism direct GDP is generated by industries directly in contact with visitors, while indirect
tourism GDP is generated by industries supplying inputs to industries directly in contact
with the visitors. The TSA Framework limits its recommendations to the evaluation of direct
tourism GDP. The evaluation of indirect tourism GDP would require the use of input-output
techniques.
The TSA Framework also mentions other aggregates, particularly the gross value
added of tourism industries. This covers tourism industries regardless of whether their
output is provided to visitors or not.
Balance of Payments and International Investment Position Manual –

sixth edition
The following items of the Balance of Payments are used to assess the monetary flows
of visitors.
Travel
Travel credits (international travel receipts) cover goods and services for own use or to
give away acquired from an economy by non-residents during visits to that economy.
Travel debits (international travel expenditure) cover goods and services for own use or to
give away acquired from other economies by residents during visits to these other
economies.
The goods and services may be purchased by the persons concerned or by another party
on their behalf (e.g. business travel). The standard component breakdown of travel is between
business and personal travel. Business travel covers goods and services acquired for personal
use by persons whose primary purpose of travel is for business. Personal travel covers goods
and services acquired by persons going abroad for purposes other than business, such as
vacations, participation in recreational and cultural activities, visits with friends and relatives,
pilgrimage, and education- and health-related purposes. This breakdown allows for closer
links with tourism satellite accounts as well as supply and use tables.
Passenger services
Passenger services cover the transport of people. This category covers all services
provided in the international transport of non-residents by resident carriers (credit or

READER’S GUIDE
international passenger transport receipts) and that of residents by non-resident carriers

(debit or international passenger transport expenditure). Passenger services include fares
and other expenditure related to the carriage of passengers, any taxes levied on passenger
services, and fares that are a part of package tours, cruise fares, rentals, charters, and
leases of vessels, aircraft, coaches, or other commercial vehicles with crews for the carriage
of passengers.
Other issues
Enterprises in tourism: An establishment is an enterprise or part of an enterprise that
is situated in a single location and in which only a single productive activity is carried out
or in which the principal productive activity accounts for most of the value added.
Employment in tourism: data on employment refer to people or jobs. In the case of
people, the data refer to employees only or to employees and self-employed people
(employed people). Full-time equivalent employment is the number of full-time equivalent
jobs, defined as total hours worked divided by average annual hours worked in full-time jobs.
Data expressed in US dollar terms: for some tables, national currency data has been
converted to US dollar data. Exchanges rates are collected from the OECD database.
Metadata and sources

The vast majority of the data used in this publication are submitted by countries. All
the detailed metadata and sources can be found under the right-hand side information
panel in the on-line OECD database at http://stats.oecd.org/.
Country coverage
The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland,
Israel, Italy, Japan, Korea, Latvia, Luxembourg, Mexico, the Netherlands, New Zealand,
Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland,
Turkey, the United Kingdom and the United States.
Other non-member economies covered in this report are: Brazil, Bulgaria, Colombia,
Costa Rica, Croatia, Egypt, Lithuania, Malta, Morocco, Peru, the Philippines, Romania, the
Russian Federation and South Africa.
Codes used for currencies

● AUD Australian Dollar
● BGN Bulgarian Lev
● BRL Brazilian Real
● CAD Canadian Dollar
● CHF Swiss Franc
● CLP Chilean Peso
● COP Colombian Peso
● CRC Costa Rican Colon
● CZK Czech Koruna
● DKK Danish Krone

READER’S GUIDE
● EGP Egyptian Pound

● EUR Euro (Austria, Belgium, Estonia, Finland, France, Germany, Greece, Ireland, Italy,
Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovak Republic, Slovenia,
Spain)
● GBP United Kingdom Pound Sterling
● HRK Croatia Kuna
● HUF Hungarian Forint
● ILS Israeli Shequel
● ISK Iceland Krona
● JPY Japanese Yen
● KRW Korean Won
● MAD Moroccan Dirham
● MXN Mexican Peso
● NOK Norwegian Krone
● NZD New Zealand Dollar
● PEN Peruvian Sol
● PHP Philippine Peso
● PLN Polish Zloty
● RON Romanian Leu
● RUB Russian Ruble
● SEK Swedish Krona
● TRY Turkish Lira
● USD United States Dollar
● ZAR South African Rand
Symbols for missing data and abbreviations

These symbols are used in the country tables:
| Break in series
.. Data is not available
c Confidential data
e Estimated data or data based on the use of a limited amount of data
f Forecast value
p Provisional data
In some cases, due to specifics of electronic data processing technologies, slight
discrepancies may occur between totals and sums of components in those tables that are
based on survey information.

© OECD 2018
Executive summary
T ourism is a major economic sector, directly contributing, on average, 4.2% of GDP, 6.9% of
employment and 21.7% of services exports in the OECD area. Recent trends point to
continued growth and outreach: globally, international tourist arrivals grew to over 1.2 billion
in 2016, and OECD countries play a prominent role, with arrivals up 3.9%, representing 55%
of the global total and accounting for 60.4% of global travel receipts (up 2.6% in real terms,
reaching USD 1 226 billion in 2016). Despite widespread downward pressure on public
finances, budgets for tourism have largely been maintained or increased, due to awareness
of the important economic contribution of the sector.
Sustained development of the tourism sector will depend upon its ability to adapt to
emerging economic, social, political, environmental and technological trends. Fulfilling
tourism’s potential as an engine for sustainable and inclusive growth will require the
development of sound policies, integrated strategies, inter-ministerial structures, and
mechanisms that involve the private sector and other stakeholders in tourism governance.
A large majority of countries have dedicated tourism polices, strategies and plans for the
medium to long-term. There is much similarity between countries in their tourism policy
priorities, which focus on improving competitiveness, sustainability and inclusiveness,
addressing seasonality of demand, and enhancing the quality and appeal of the tourism offer.
The last two years have seen a growing recognition of the importance of the development,
management and promotion of local destinations, supported by regional or local structures
and funding, and the preparation and execution of destination management plans.
A wide range of actions have been taken to develop and market distinctive products and
destinations. Marketing activities have included various examples of successful regional and
thematic branding. Many countries have established new offers and experiences based on their
natural and cultural assets, and pursued opportunities for year-round growth through the
promotion of health and wellness tourism, business tourism, events and various niche products.
Tourism policies continue to give a high priority to opportunities presented by digitalisation, both
in creative and targeted communication and in the handling and analysis of data.
The growth of international travel, notably from the Chinese and other Asian markets,
is providing opportunities in all continents. Further action has been taken to improve
connectivity and reduce barriers to travel, including visa requirements and entry procedures,
while also addressing growing concerns about security. At the same time, various countries
have strengthened promotion in the domestic market, including initiatives to extend holiday
opportunities for all.
Supply-side policies to improve competitiveness include investment promotion and the
simplification of business regulations, while recognising that there may be a need to extend
and clarify regulations in emerging areas such as informal tourism services promoted
through on-line platforms. The need to address labour and skills shortages in the sector is
21
EXECUTIVE SUMMARY
recognised as a key issue in many countries, requiring action to improve the awareness and
attractiveness of careers in tourism and the availability of relevant training.
The declaration by the United Nations of 2017 as the International Year of Sustainable
Tourism for Development has drawn further attention to the sustainable tourism agenda
and the contribution of the sector to the Sustainable Development Goals. This is reflected
in policy priorities in many countries, with actions taken to improve the monitoring of
tourism impacts, extend certification schemes, encourage the use of new technologies and
green finance instruments, and generally promote environmentally sustainable and
socially inclusive tourism growth.
Key policy messages

Fostering an integrated policy approach:
● Develop long-term strategies that consider the trade-offs and complementarities with
related policy areas, and clearly identify the roles, functions, and interactions of key
stakeholders.
● Recognise the value of strong dialogue between government, industry, and civil society
in the development, implementation and monitoring phases.
Preparing for megatrends:

● Build systemic and strategic approaches to adapt in an increasingly fast-moving, inter-
connected and dynamic environment.
● Modernise regulatory and legislative frameworks, broadly engaging with key stakeholders
in their development, and supporting predictive mechanisms in the policy and regulatory
process.
● Cultivate partnerships with industry, other governments, and civil society to address the
cross-cutting impacts of megatrends, and developing responses that account for new
and innovative business approaches to service delivery.
● Take steps to future-proof tourism policy and promote a culture of innovation and change
management within government to ensure that long-term megatrends are given due
consideration, notably through robust data analysis and scenario planning.
Promoting investment and financing for sustainable tourism:

● Incorporate environmental and sustainability criteria into public financing and investment
supports, and encourage the uptake of green financing instruments for tourism projects,
notably by leveraging private investment.
● Encourage more responsible business practices in tourism through the integration of
environmental and social criteria into tourism policies and programmes, mobilisation of
green investors, and uptake of sustainable practices by businesses.
● Build capacity and better co-ordinate actions across different levels of government and
policy areas, including tourism, environment and innovation, to support the shift to
more sustainable tourism investment and financing practices.
● Improve data and analysis on green finance and investment in sustainable tourism
development, to accurately integrate environmental risk into tourism financing and
investment decisions, and develop a better understanding of the economic, social and
environmental outcomes of tourism investment.

PART I
Active policies for tourism
OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

© OECD 2018
PART I
Chapter 1
Tourism trends and policy priorities
This chapter covers recent trends in tourism and associated developments in tourism
governance and policy. It is based on responses to a policy and statistical survey of
OECD member countries and partner economies. The chapter outlines the economic
importance of tourism and sets out the role of government in promotion and product
development, and in supporting a competitive and sustainable tourism industry. The
effectiveness of governance structures and funding issues are considered. Tourism
policy priorities, reforms, and developments are analysed with examples of country
practices highlighted.
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli
authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights,
East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
25
I.1. TOURISM TRENDS AND POLICY PRIORITIES
T ourism is a highly important economic sector, making a significant contribution to the

economies of OECD member and partner countries. Recent trends provide clear evidence of
tourism’s continued growth and outreach. The 2017 OECD High Level Meeting on Tourism
Policies for Sustainable and Inclusive Growth recognised tourism’s potential as a driver for
sustainable development in OECD member and partner countries, when based upon sound
policies and effective management. Governments are well placed to provide direction and
support but it is increasingly recognised that this must be delivered in an integrated way,
based on structures that involve the private sector and the many agencies and bodies, at all
levels, whose activities can influence tourism performance and impacts.
Recent trends
Tourism is well recognised for playing a key role in global economic activity, job
creation, and as a source of export revenue and domestic value added. On average, tourism
directly contributes 4.2% of GDP, 6.9% of employment and 21.7% of services exports to
OECD countries (Figure 1.1), all of which are stable or slightly higher than figures for 2014.
Globally, inbound tourist arrivals (overnight visitors) grew to over 1.2 billion in 2016, an
increase of 46 million (3.9%) on the previous year. This figure is forecast to reach 1.8 billion by
2030, with international tourist arrivals in emerging economy destinations projected to grow
at double the rate of advanced tourism economies. As a result, the market share of emerging
tourism economies is expected to increase from 45% in 2016 to 57% over the same period.
France, the United States, Spain and China continue to fill the top four places for inbound
arrivals in 2016, while China, the United States and Germany are the highest outbound
markets in their respective regions (UNWTO, 2017a).
OECD member countries continue to play a prominent role in international tourism,
accounting for just over half (55%) of total global arrivals in 2016 (up from 54% in 2014). After
increasing at a faster rate than global arrivals in 2014 (6.4% compared to 4.2% globally), the
average growth in international arrivals for OECD members reduced to 3.9% in 2016
(compared to 3.9% globally and 4.7% for the EU28). Despite the OECD rolling four year average
annual growth rate of 4.9% slightly exceeding the global average, the 2016 figure is more
reflective of the longer-term trend of a slowdown in arrivals to the OECD relative to tourism
worldwide, resulting in a loss of market share.
More specifically, 14 OECD countries recorded double digit annual growth in 2016, with
four in excess of 20% – Chile (26%), Iceland (39%), Japan (21.8%), Korea (30.3%) – while
Belgium, Latvia and Turkey all experienced retractions of more than 10%. International
arrivals grew by 10% or more in eight OECD partner countries (Bulgaria, Colombia, Costa
Rica, Lithuania, Malta, Philippines, Romania, South Africa). A breakdown of international
tourist arrivals to OECD member countries and selected partner economies is provided in
Table 1.1.
Between January and August 2017, destinations worldwide welcomed just over
900 million international tourist arrivals, representing an increase of over 50 million (7%)

Figure 1.1. Direct contribution of tourism to OECD countries

As percentage of GDP and employment, 2016 or latest year available
Tourism as % of GDP Tourism as % of total employment

Tourism as % of GDP, OECD average Tourism as % of total employment, OECD average
%
15
12.5
OECD average 6.9%

10 OECD average 4.2%
7.5
2.5
Notes: GDP data for France refer to internal tourism consumption.

GDP data for Germany refer to GVA.
GDP for Greece refer to tourism GVA of industries 55-56 of NACE Rev. 2.
GDP data for Spain includes indirect effects.
Source: OECD Tourism Statistics (Database).
1 2 http://dx.doi.org/10.1787/888933639417
Table 1.1. International tourist arrivals, 2012-16

Average annual growth Growth rate
Type of 2016
rate 2012 to 2016 2015 to 2016
indicator
Thousand %
Australia Visitors 8 269 7.6 11.0

Austria Tourists 28 121 3.9 5.2
Belgium Tourists 5 557 -2.5 -13.7
Canada Tourists 19 818 5.0 10.3
Chile Tourists 5 641 12.2 26.0
Czech Republic Tourists 12 808 6.1 10.2
Denmark Tourists 10 781 6.0 3.4
Estonia Tourists 3 147 3.5 5.3
Finland Tourists 4 599 2.1 -5.3
France Tourists 82 570 0.2 -2.2
Germany Tourists 35 555 4.0 1.7
Greece Visitors 28 071 13.4 7.5
Hungary Tourists 13 474 11.9 8.6
Iceland Tourists 1 792 27.8 39.0
Ireland Tourists 8 425 8.7 8.8
Israel Tourists 2 900 0.1 3.6
Italy Tourists 32 552 2.1 7.3
Japan Visitors 24 040 30.2 21.8

Table 1.1. International tourist arrivals, 2012-16 (cont.)

Average annual growth Growth rate
Type of 2016
rate 2012 to 2016 2015 to 2016
indicator
Thousand %
Korea Visitors 17 242 11.5 30.3

Latvia Tourists 1 793 5.7 -11.4
Luxembourg Tourists 1 054 2.6 -3.5
Mexico Tourists 35 079 10.6 9.3
Netherlands Tourists 15 829 6.7 5.5
New Zealand Tourists 3 370 8.0 10.9
Norway1 Tourists 5 960 6.5 12.4
Poland Tourists 17 471 4.2 4.4
Portugal Tourists 10 622 8.4 12.4
Slovak Republic Tourists 2 027 7.3 17.8
Slovenia Tourists 3 032 8.9 12.0
Spain Tourists 75 315 7.0 10.5
Sweden2 Tourists 10 750 -6.8 -3.5
Switzerland3 Tourists 10 402 5.0 11.8
Turkey Tourists 30 289 -4.0 -23.3
United Kingdom Tourists 35 814 5.2 4.0
United States Tourists 75 868 3.3 -2.1
Brazil Tourists 6 578 3.8 4.3

Bulgaria Tourists 8 252 6.0 16.2
Colombia Visitors 5 092 9.9 14.5
Costa Rica Tourists 2 925 5.7 10.0
Croatia Tourists 13 809 7.4 8.9
Egypt Tourists 5168 -17.5 -42.5
Lithuania Tourists 2 296 4.9 10.8
Malta Tourists 1 966 8.0 10.2
Morocco Tourists 10 332 2.5 1.5
Peru Tourists 3 744 7.1 8.4
Philippines Tourists 5 967 8.7 11.3
Romania Tourists 2 471 10.6 10.6
Russian Federation4 Tourists 24 571 -1.7 -8.5
South Africa Tourists 10 044 2.3 12.8
EU28 4.5 4.7
OECD members 4.9 3.9
World5 1 235 000 4.4 3.9
Notes: For more information, please see the country profiles.

Tourists: International tourist arrivals (excluding same-day visitors).
Visitors: International visitor arrivals (tourists and same-day visitors).
1. Average annual growth rate refers to 2013-16.
2. Data refers to 2014. No data is available for 2015 and 2016 due to a change in Border Survey methodology. Average
annual growth rate refer to 2012-14. Growth rate refers to 2013-14.
3. Until 2015 only data for hotel and similar establishments available. Since 2016, data are compiled also with
supplementary accommodation.
4. Average annual growth rate refers to 2014-16.
5. UNWTO data (2017b).
1 2 http://dx.doi.org/10.1787/888933639474
year on year. As such, 2017 is currently on target to be the eighth consecutive year of solid
growth for international tourism (UNWTO, 2017a).
Globally, international travel receipts reached USD 1 226 billion in 2016, up from USD 1 202
billion in 2015 (but down slightly from USD 1 260 billion in 2014). This equates to growth of 2.6%

in real terms, taking into account exchange rate fluctuations and inflation, and follows the
overall trend in international tourist arrivals, although at a slightly slower pace. Global
expenditure on travel more than doubled between 2000 and 2016, accounting for 7% of global
exports in goods and services (UNWTO, 2017b). OECD countries accounted for 60.4% of global
travel receipts (exports) and 51% of global travel expenditures (imports) in 2016 (compared to
60.6% and 49.8% respectively in 2015). Just under two thirds of OECD member countries
recorded a positive travel balance in 2016. Table 1.2 provides a summary of international travel
receipts, expenditure, and the travel balance for OECD and selected partner economies.
Tourism’s share of trade in services is both significant and increasing for many OECD
countries. In 2016, international tourism receipts represented, on average, 21.7% of services
exports in the OECD. This share varies by country and when considering G7 economies,
ranges from 11.9% in the United Kingdom to 40.1% in Italy (Figure 1.2). Most notably, over
Table 1.2. International travel receipts and expenditure, 2015-16

Million USD
Travel receipts Travel expenditure Travel balance
2015 2016 2015 2016 2015 2016
Australia 28 872 32 423 23 760 24 915 5 112 7 508

Austria 18 212 19 287 9 100 9 500 9 112 9 787
Belgium 11 965 11 830 18 927 19 567 -6 963 -7 736
Canada 16 541 18 022 30 119 28 743 -13 578 -10 721
Chile 2 482 2 737 1 963 2 137 518 600
Czech Republic 6 048 6 309 4 866 4 919 1 182 1 390
Denmark 6 684 6 903 8 916 9 200 -2 232 -2 298
Estonia 1 427 1 530 982 1 099 446 431
Finland 2 558 2 715 4 774 5 168 -2 216 -2 454
France 45 901 42 367 38 405 40 335 7 496 2 032
Germany 36 853 37 408 77 481 81 063 -40 627 -43 655
Greece 15 667 14 609 2 260 2 219 13 407 12 390
Hungary 5 344 5 653 1 831 2 162 3 512 3 491
Iceland 1 617 2 424 996 1 277 621 1 147
Ireland 4 791 5 182 5 680 6 108 -888 -926
Israel 5 794 5 722 6 012 6 844 -218 -1 122
Italy 39 434 40 614 24 413 24 706 15 021 15 908
Japan 24 983 30 679 15 973 18 485 9 010 12 194
Korea 15 214 17 210 25 270 26 642 -10 056 -9 432
Latvia 895 866 614 695 281 171
Luxembourg 4 294 4 290 3 313 3 348 982 941
Mexico 17 734 19 571 10 098 10 227 7 636 9 344
Netherlands 11 587 14 110 17 552 17 909 -5 965 -3 799
New Zealand 9 049 9 638 3 735 3 990 5 314 5 648
Norway 4 873 5 204 15 292 15 412 -10 419 -10 208
Poland 10 467 10 977 7 936 7 984 2 531 2 993
Portugal 12 700 14 026 4 006 4 258 8 694 9 768
Slovak Republic 2 362 2 746 2 126 2 237 236 509
Slovenia 2 327 2 423 912 944 1 415 1 478
Spain 56 444 60 303 17 361 20 184 39 082 40 119
Sweden 11 317 12 510 14 416 14 133 -3 099 -1 623
Switzerland 16 410 16 259 16 288 16 515 122 -255
Turkey 26 616 18 743 5 368 4 783 21 248 13 960
United Kingdom 45 464 39 440 63 273 63 426 -17 809 -23 986
United States 205 418 205 940 114 723 123 618 90 695 82 322

Table 1.2. International travel receipts and expenditure, 2015-16 (cont.)

Million USD
Travel receipts Travel expenditure Travel balance
2015 2016 2015 2016 2015 2016
Brazil 5 844 6 024 17 357 14 497 -11 513 -8 473

Bulgaria 3 146 3 653 1 116 1 361 2 031 2 292
Colombia 4 245 4 694 4 322 4 209 -77 485
Costa Rica 3 267 3 879 690 809 2 576 3 070
Croatia 8 797 9 593 756 945 8 041 8 649
Egypt 6 065 2 645 3 442 4 110 2 623 -1 466
Lithuania 1 154 1 184 951 974 204 210
Malta 1 369 1 437 359 398 1 009 1 039
Morocco 6 260 6 556 1 402 1 457 4 857 5 099
Peru 3 320 3 512 1 691 1 838 1 629 1 675
Philippines 5 272 5 139 11 343 11 275 -6 070 -6 136
Romania 1 711 1 723 2 058 2 137 -347 -414
Russian Federation 8 420 7 788 34 932 23 951 -26 512 -16 163
South Africa 8 259 7 919 2 998 2 858 5 260 5 061
EU28 371 391 843 125 659 528 683 054
OECD members 728 341 740 668 598 740 624 750
World 1 202 000 1 226 000 1 202 000 1 226 000
Note: For more information, please see the country profiles.

Source: OECD Tourism Statistics (Database) and UNWTO (2017b).
1 2 http://dx.doi.org/10.1787/888933639493
Figure 1.2. Contribution of tourism to services exports, selected OECD countries, 2016
%
45
40
35
30
25
20
15
10
0
Italy United States Canada OECD France Japan Germany United Kingdom
Source: OECD Trade in services by partner country (Database), extracted November 2017.
1 2 http://dx.doi.org/10.1787/888933639436
the period 2010 to 2016 tourism as a share of services exports increased by 3.1 percentage
points in the United States and decreased by 5.3 in France.
Tourism exports are economically important as they contribute to the value added of
the economy. While not all tourism exports result in increases in domestic value added,
results from the OECD Trade in Value added (TiVA) initiative indicate that tourism receipts
generate more than average value added for receiving economies, and have significant
upstream effects in both receiving and other countries. According to TiVA estimates,
approximately 80% of tourism exports generate domestic value added in OECD countries; the

remaining 20% result in value created in other countries (imports). It is also estimated that
EUR 1 of value added in tourism creates 56 cents of value added in upstream industries.
Considerable variation in the significance of domestic tourism is evident at country
level. Domestic tourism is particularly significant in Australia, Canada, Germany, Italy, Japan,
Mexico, the Netherlands, Norway, and the United Kingdom and United States, where it
represents over 70% of internal tourism consumption. In contrast, inbound tourism, as a
proportion of internal tourism consumption is more important in the Czech Republic,
Estonia, Hungary, Iceland, Poland, and Slovenia. Table 1.3 provides a breakdown of internal
tourism consumption (domestic and inbound) for selected OECD member countries.
Table 1.3. Internal tourism consumption, 2016 or latest available year

Internal tourism Domestic tourism Inbound tourism
Reference year expenditure expenditure expenditure
Million USD, current prices % share
Australia 2015 97 582 74 26

Austria 2015 36 692 46 54
Belgium .. .. .. ..
Canada 2016 69 125 78 22
Chile 2013 6 579 66 34
Czech Republic 2015 9 904 39 61
Denmark 2015 14 490 60 40
Estonia 2012 1 675 14 86
Finland 2014 15 105 65 35
France 2015 147 236 63 37
Germany 2015 293 020 85 15
Greece .. .. .. ..
Hungary 2013 6 480 39 61
Iceland 2015 2 838 30 70
Ireland 2007 8 978 46 54
Israel 2014 11 406 52 48
Italy 2010 149 103 74 26
Japan 2015 206 864 87 13
Korea .. .. .. ..
Latvia .. .. .. ..
Luxembourg .. .. .. ..
Mexico 2016 140 366 82 18
Netherlands 2016 83 785 72 28
New Zealand 2016 22 185 58 42
Norway 2015 19 716 71 29
Poland 2013 17 033 34 66
Portugal 2008 21 933 41 59
Slovak Republic 2014 4 705 42 58
Slovenia 2014 4 663 31 69
Spain 2013 151 675 52 48
Sweden 2016 34 572 60 40
Switzerland 2011 39 724 53 47
Turkey .. .. .. ..
United Kingdom 2014 214 929 80 20
United States 2015 935 464 79 21
OECD average 76 24
Notes: For more information, please see the country profiles.

Conversion from national currency to USD calculated using OECD annual average exchange rates for corresponding year.
Tourism consumption is composed of tourism expenditure (monetary transactions), plus other transactions.
1 2 http://dx.doi.org/10.1787/888933639512

On average, domestic and inbound tourism account for 76% and 24% of internal
tourism consumption respectively, in selected OECD countries (Figure 1.3). When
considering internal tourism consumption by product, passenger transport (24%), followed
by accommodation (19%), and food and beverage (16%) account for well over half of total
consumption.
Figure 1.3. Internal tourism consumption, selected OECD countries

By type of tourism and product, 2016 or latest available year
Domestic and inbound tourism Tourism consumption by product
Passenger transport
24%
Food and beverage
16%
Travel agencies and

Domestic Inbound other services
tourism tourism 5%
consumption consumption
76% 24%
Accommodation Culture, sports and
19% recreation
7%
Other services
31%

1 2 http://dx.doi.org/10.1787/888933639455
Global tourism has now experienced steady growth for over six decades, benefitting
from the rise of globalisation and technological advances that have led to cheaper airfares,
while making it easier for people to plan and book their own travel. Throughout this period
of sustained growth, tourism has demonstrated significant resilience in the face of a
variety of challenges. In the last decade alone, these have ranged from the lingering
impacts of the global economic crisis, geopolitical uncertainty, numerous terrorist attacks,
natural disasters and other external shocks. Tourism demand historically tracks economic
conditions closely, and since the downturn in 2009, global tourism has experienced more
moderate year-on-year growth. This trend is expected to continue with international
arrivals forecast to increase by an average of 3.3% per year to 2030 (4.4% to emerging
destinations and 2.2% to advanced economies) (UNWTO, 2017a).
However, after many years of weak recovery, and with global economic growth in 2016
at the lowest rate since 2009, some signs of improvement have begun to appear. Trade and
manufacturing output growth have picked up from a very low level, helped by firmer
domestic demand growth in Asia and Europe, and private sector confidence has
strengthened. But policy uncertainty remains high, trust in government has diminished,
wage growth remains weak, inequality persists, and imbalances and vulnerabilities remain
in financial markets. Against this background, a modest pick-up in global GDP growth to 3.5%
is projected for 2017, strengthening further to 3.7% in 2018, before easing slightly in 2019.
However, compared to the 20-year pre-crisis average, OECD per capita GDP growth remains
over 0.5% weaker and global growth continues to lag (OECD, 2017c; OECD, 2017d).

Employment and unemployment rates are expected to continue to slowly improve in

most OECD countries in the context of moderate growth. The OECD average
unemployment rate is projected to move from 6.2% in Q4 2016 to 5.7% in Q4 2018. While an
expanding majority of OECD countries have finally closed the substantial jobs gap that
opened during the Great Recession of 2008-09, people in a number of countries are
expressing rising dissatisfaction with economic policies promoting international trade and
investment. The backlash against globalisation and trade highlight areas where
employment, skills and social protection policies need to be reinforced and adapted to a
changing economic environment (OECD, 2017e).
Tourism is highly labour intensive and a significant source of employment in OECD
countries. The sector offers strong potential to support job-rich growth. It creates jobs
for people of different ages and skill levels and provides opportunities to enter the
labour market, gain experience, develop skills and move into higher level, better paid
jobs.
Between 1995 and 2015 the share of middle-skill occupations in total employment has
declined in almost all sectors of the economy in selected OECD countries. During this
period, “hotels and restaurants” was the second fastest growing sector, with an increase of
total employment in excess of 45%, behind only “real estate, renting and business
activities” at 70% (OECD, 2017e).
The future of tourism will continue to be impacted by a range of current and emerging
economic, social, political, environmental and technological changes, bringing new and
often unseen challenges, threats and opportunities. For example, Chapter 2 explores the
multi-dimensional implications of four megatrends likely to inform policy and shape the
future of tourism to 2040: i) evolving visitor demand, ii) sustainable tourism growth,
iii) enabling technologies, and iv) travel mobility. Similarly, investment and financing are
an essential component of the challenge to shift to sustainable (low carbon, resource
efficient and socially inclusive) tourism development. Chapter 3 explores policies,
institutions and instruments for green finance and investment, highlighting good practices
that catalyse and support this transition.
Addressing these and other multi-faceted challenges faced by the tourism industry,
including the infrastructure and skills needed to meet expected future demand, requires
an integrated approach across departments and levels of government, with input and
support from industry and the research community. Long-term strategies and policies
focused on promoting quality employment and job creation, skills development,
entrepreneurship, innovation, effective investment, and integrated reg ional
development, are integral to achieving sustainable and inclusive tourism growth – growth
that takes into account current and future economic, social and environmental impacts,
and addresses the needs of visitors, the industry, the environment and host
communities.
Governance, funding and strategic development

The challenges and opportunities presented by recent tourism trends provide the
context for the preparation, review and delivery of tourism policies and the strategic
development of the sector. In turn, this requires effective governance structures that
enable the planning and coordination of actions by key players and the availability of
sufficient funding for their implementation.

Governments have continued to engage positively in this process, recognising the

importance of the sector and its relevance to a wide economic, social and environmental
agenda. Their input has remained relatively consistent and has been directed towards:
● Policy formulation and implementation,
● Market access and facilitating travel,
● Marketing and promotion of the destination,
● Provision of necessary infrastructure,
● Stimulating and supporting product development, investment and business performance,
● Setting and regulating standards, including quality and safety,
● Encouraging sustainable and inclusive growth,
● Supporting human resource development and training,
● Addressing environmental issues and the management of natural and cultural resources,
● Responding to crises and disasters affecting the industry.
Effective national leadership and coordination

The significance of the tourism sector is well recognised by governments, with clearly
identified ministries or departments that are dedicated to its development, promotion and
management. In some countries there is a single, separate Ministry of Tourism (Brazil,
Bulgaria, Costa Rica, Croatia, Egypt, Greece, Israel, Malta, Mexico, Morocco, Philippines and
South Africa), reflecting the importance placed on the sector by the government. Where
tourism is identified as a departmental responsibility within wider ministries, in a large
majority of countries it resides within the Ministry of Economy, or equivalent ministry
dealing with trade and business (Canada, Chile, Colombia, Denmark, Estonia, Finland,
Germany, Iceland, Latvia, Lithuania, Luxemburg, Netherlands, New Zealand, Norway, Peru,
Portugal, Slovenia, Sweden, Switzerland and United States). In some countries it sits within
the Ministry of Foreign Affairs (Australia, France, Hungary), while in others, it is linked to
thematic areas such as sustainability, innovation or technology (Austria, Iceland, Spain). In
Spain, for example, there is a newly named Ministry of Energy, Tourism and the Digital
Agenda, while in Austria the creation of the Federal Ministry of Sustainability and Tourism
was recently announced. In a handful of countries tourism is linked with culture (Italy,
Korea, Romania, Russian Federation, Turkey and United Kingdom), with other linkages
including transport (Ireland, Slovakia) and sport (Korea, Poland).
Government ministries and departments with responsibility for tourism are primarily
engaged with setting tourism policy, directing its implementation, and overseeing the
legislative and regulatory framework for the sector. National Tourism Organisations
(NTOs), mainly reporting to the relevant Ministry, undertake marketing and promotion
with many also supporting aspects of product development. In the last two years there has
been some rationalisation of NTOs – for example in Slovakia the NTO function has been
absorbed into the Ministry, while in Finland it has been merged with the funding agency to
become “Business Finland”.
In some countries, separate tourism development agencies exist to promote investment
in the sector. In Mexico, for example, the National Fund for Tourism Development
(FONATUR) was created by the Ministry of Finance and is coordinated by the Ministry of
Tourism, with functions that include conducting feasibility studies, developing destination
master plans, project management, executing infrastructure projects and engagement with

various forms of financing. In Spain, SEGITTUR is a government agency for research,

technology and innovation in tourism development, while in Denmark there are three
separate development agencies for coastal and nature, business and conference, and city
tourism.
The cross-cutting and complex nature of tourism means that the sector relies on many
areas of government policy and action. This requires a “whole-of-government” approach,
involving ministries and departments with responsibility for transport, the environment,
education and training, natural and cultural heritage, as well as the economy, business
development, security and foreign affairs. This requirement has become more widely
understood and most countries now have inter-ministerial committees or bodies covering
tourism. In South Africa, bilateral agreements between the Ministry of Tourism and other
ministries allow tourism officials to work in key policy forums to ensure consideration of
policy impacts on tourism.
The need for an integrated approach was further reinforced at the 2017 OECD High
Level Meeting on Tourism, where countries endorsed the Policy Statement – Tourism
Policies for Sustainable and Inclusive Growth. The Statement highlights the importance of
tourism as an engine for economic, sustainable and inclusive growth and notes that
moving toward coherent and comprehensive policy approaches will help countries to
reframe tourism growth to better spread the benefits, address inequalities and improve the
resilience of economies.
It is also imperative that consultation and coordination on tourism policy and action
occurs between government and wider stakeholders, notably the private sector but also civil
society and other interests. Structures for this are now widely established. In some countries
this is achieved by involving industry and other representatives in inter-ministerial groups;
in others there are separate tourism advisory bodies or overarching tourism councils. Some
examples of different approaches are shown in Box 1.1. Coordination has also been achieved
through the establishment of task forces or working groups to implement specific tourism
strategies or address key topics (Australia, Austria, Iceland, and the Russian Federation).
Chambers of commerce and business associations frequently play a key role in representing
sections of the industry, such as hotels, tour operators, and business tourism, sometimes in
industry-wide confederations.
Strengthening regional and local structures

Coordination in the governance and delivery of tourism needs to happen not only
horizontally at a national level but also vertically between the central government and the
regions and local destinations that receive the visitors and help create the experience
“on the ground”. The importance of effective destination management, including marketing
and product development, has been increasingly underlined in global strategies to promote
sustainable tourism. This calls for the presence of regional and local bodies that are able to
plan and take action within destinations. Again, there is a strong need for a partnership
approach at this level, bringing together local government and private sector businesses
and enabling representation by local communities and other interests.
In some countries with a broadly federal government structure, each state or province
may have a tourism ministry, department, or other government entity handling tourism
(e.g. Australia, Germany, Brazil, and the United States). In most countries, regional, provincial
and even municipal authorities will engage in tourism development, management and

Box 1.1. National coordination structures for tourism: Country approaches

The following examples illustrate different structures for providing inter-ministerial and
wider stakeholder coordination.
In Denmark the National Tourism Forum is chaired by the Ministry of Industry, Business
and Financial Affairs and includes the chair of VisitDenmark, two members from Danish
Regions, one member from Local Government Denmark, two members representing the
tourism industry, and a tourism researcher.
In Egypt the Supreme Council for Tourism is chaired by the President and involves
11 ministries together with the Egyptian Tourism Federation, a body composed of five
tourism industry business associations.
In Finland an inter-ministerial working group on tourism meets several times per year.
In 2016 a Tourism Cooperation Group was established consisting of 35 industry leaders
representing different branches of tourism.
In France, an Inter-ministerial Tourism Committee (CIT) was established in 2016 and
meets regularly, under the authority of the Prime Minister, with specific agendas planned
in advance. Such an approach makes it possible to mobilise the different departments
around priority projects, such as training, investment or promotion.
In Morocco, six committees are co-chaired by the Ministry of Tourism and the National
Tourism Confederation, covering: governance, competitiveness, air travel, output and
investment, human capital and sustainability.
In the United States, the Travel and Tourism Advisory Board (TTAB) consists of up to
32 private-sector representatives from companies and organisations, who are appointed to
provide policy input to the Secretary of Commerce. The Tourism Policy Council (TPC) is an
inter-agency council established by law for the purpose of ensuring that the nation’s tourism
interests are considered in federal decision-making. Its major function is to coordinate
national policies and programmes of federal agencies that have a significant effect on travel
and tourism, recreation, and national heritage resources. It reviews and responds to TTAB
recommendations.
marketing to a varying extent, according to their resources and priorities, although

approaches will vary (Box 1.2).
Actions at the regional and local level can be highly significant and important in
delivering a successful tourism industry. Some recent trends have included the
rationalisation of local government, leading to fewer and larger authorities (e.g. Brazil,
Finland, Norway). This can help to reduce fragmentation of tourism activity. Of most
significance has been the ongoing creation of Destination Management Organisations
(DMOs) which are formally constituted to deliver local tourism benefits with the
involvement of the private sector. DMOs may be established at different levels and can
mesh and network with each other, as demonstrated by the recent adoption of a law for the
development and implementation of Destination Management Organisations in Romania
(Box 1.3).
The relationship between legislation, national policies and programmes, and the
functions and activities of local government and DMOs is of particular importance. In many
countries, the competence for tourism is devolved to regions or states, while activities such
as quality inspection and control, and the enforcement of regulations, are often undertaken

Box 1.2. Strengthening regional and local tourism structures:

Country approaches
In addition to coordinating a whole-of-government federal approach, the Government of
Canada also works actively with provincial and territorial colleagues. In 2016, the Canadian
Council of Tourism Ministers announced the Nunavut Declaration, which commits to
federal-provincial-territorial collaboration, and aims to:
● Strengthen competitiveness by: collaborating on marketing; broadening understanding of
the sharing economy; facilitating communication on importance of air competitiveness
and access; and identifying potential solutions for labour and workforce challenges.
● Grow Canada’s tourism offerings by: exploring opportunities to collaborate on Indigenous
tourism, festivals and events, and sustainability; and economic development from
federal, provincial and territorial parks visitation.
● Support a tourism statistical system in Canada that meets the information needs of
decision-makers.
In France, responsibility for promoting tourism is devolved to several layers of regional
and local government. A regional scheme for the development of leisure and tourism
[Schéma Régional de Développement du Tourisme et des Loisirs (SRDTL)] sets out medium-
term objectives for regional tourism development and determines the terms and
conditions governing policy implementation. Each region has a Regional Tourism
Committee (CRT). Regions are responsible for their own tourism data, and coordinate
public and private initiatives related to tourism development, promotion and
information. Départments draw up tourism planning schemes where necessary, taking
account of the priorities set out in the SRDTL. Each is required to set up a Departmental
Tourism Committee (CDT). Municipalities, and any inter-municipal authorities to which
this responsibility has been transferred, may set up tourist offices which are responsible
for receiving and informing tourists and promoting tourism within the municipality or
inter-municipal authority. They also have the option to engage with other activity, such
as marketing tourist services.
In 2017, Switzerland’s Federal Council adopted a new tourism strategy developed by the
State Secretariat for Economic Affairs (SECO) on behalf of the Federal Department of
Economic Affairs, Education and Research (EAER). Coordination and co-operation is one of
eight key areas of activity in the new strategy. The strategy strengthens the coordination of
the Confederation’s tourism policy, with the primary focus being to develop the Tourismus
Forum Schweiz (Tourism Forum Switzerland – TFS) into a platform for dialogue and
coordination. The aim is to create temporary, broadly diversified work groups comprised of
representatives of the tourism industry, cantons, municipalities and Federal
Administration. The topic- and project-specific co-operation within these work groups
aims to identify targeted challenges and develop optional actions and approaches to
solutions.
by regional or local offices of the tourism ministry or NTO. However, some of these functions,
together with a range of development, management and marketing activity may be carried
out by local bodies in liaison and agreement with the NTO and other national agencies. In
Morocco the Ministry of Tourism’s work is relayed through seven regional and 18 provincial
bodies. In Colombia, the national ministry coordinates tourism planning with the regional
and local authorities through Competitiveness Agreements, which identify the priorities for
joint work over a three-year period. While in France, “destination contracts”, are designed to

Box 1.3. Law on Destination Management Organisations in Romania

Romania has recognised that an integrated and cohesive tourism sector can only be
developed and managed through a destination management organisation with the
optimum involvement of all operating structures. It has therefore established a law for
the development and implementation of Destination Management Organisations
(DMOs) which will create a partnership between the public and private sectors and
NGOs and raise awareness of their roles in promoting the tourism destination as a
whole by all stakeholders. The law determines that there will be a three-tier structure
for DMOs, and that the private sector should constitute at least 50% of membership for
all DMOs:
● A central or national DMO. This will be the primary institution responsible for the
operation and management of the tourism sector as a whole and for inter-sectoral
coordination. Its interests will include: policies and strategies, administration,
governance, management, legislation, regulations, human resource development,
marketing and promotion, sustainable development and quality control. It will bring
together relevant ministries (including the Ministry of Tourism, Transport, Culture,
Education and Research, Water and Forests, Regional Development, Public Administration
and European Funds, Environment) and other major stakeholders (Professional
associations, NGOs, managers of protected areas, tourism education and training
institutions, employers’ associations, regional DMOs and other relevant entities). It will be
a high-level body with a board of directors.
● Regional DMOs. These will have a strong relationship with the national DMO and will
manage specific regions. They may involve a cluster of several local DMOs. Membership
will include local authorities, the private sector, professional organisations, universities
and others. Managed by a board of directors, they will have full autonomy for product
and destination development, marketing, human resources, organisation of events,
regional/local laws and regulation of the sector.
● Local DMOs. These will be in charge of a single destination – a town, village or a
thematic destination. Local authorities will be the prime drivers but in partnership with
the private sector. Managed by a local executive committee, they will operate under the
overall guidance and support of the regional DMO and coordinate with other local DMOs
in the region.
rally public and private stakeholders in a given region around inspiring themes, with the aim
of creating and promoting an attractive, intelligible offer for national and international
audiences. In many countries, advice, support and often funding is provided to regional and
local tourism organisations to fulfil their functions. In Belgium-Wallonia a new Tourism Code
is facilitating a restructure and clarification of stakeholder roles and a reduction in the
number of Maisons du Tourisme.
It is also important to ensure effective bottom-up integration occurs, with local and
regional bodies having a say in the development of national policies and programmes.
Most countries include regional representatives within their national tourism coordination
structures. Coordination and support can also be provided by non-tourism bodies – in
Sweden, for example, the Association of Local Authorities and Regions (SALAR) has
become increasingly engaged with tourism and supports the work of its members through
platforms, networking and conferences.

Tourism budgets and funding

The quality of destinations and the performance of tourism is affected by many kinds
of public spending, on infrastructure, heritage conservation, essential services, security,
enterprise support, education and training, as well as on destination marketing and
promotion. Therefore, the sector is sensitive to the overall state of the economy, the
generation of revenue to the exchequer and the availability of resources. In many countries
public finances have remained tight.
Looking at budgets specifically allocated to tourism, the picture is mixed. In a few
countries there has been a decrease in the annual budget for tourism between 2015 and
2016/17 (e.g. Belgium Flanders, Croatia, Czech Republic, Greece) while in others there has
been an increase (e.g. Canada, Chile, Finland, Germany, Hungary, Luxembourg, Malta,
Spain, Switzerland). There are competing forces at play here, with restricted government
resources and austerity policies on the one hand and a growing recognition of the
economic importance of tourism on the other. An extreme example is the case of Hungary,
where the budget for tourism quadrupled in 2017 after being identified as an area of
strategic priority by the Hungarian government.
In general, the largest share of the tourism budget tends to be allocated to marketing
and promotion, including the operation of the NTOs, and which is often used as leverage to
stimulate increased marketing activity by the private sector. In some countries significant
sums are allocated to projects and programmes to improve infrastructure and enhance the
tourism product, often in regions in need or with potential. An example is the Tourism
Infrastructure Fund in New Zealand (Box 1.4).
In most countries the majority of funding for tourism comes from central
government budgets. European Union Structural Funds also provide a significant source
in countries where they are available. Other sources include taxes and charges on
accommodation stays, air travel, arrivals and departures and the use of certain resources.
Businesses may also pay contributions for services provided. In Colombia, for example,
other sources of funding include, obligatory contributions from tourism service providers
for the promotion of national tourism destinations, income from the use of government
owned tourism-related brands, and penalties imposed on tourism service providers for
legal infractions.
In a few countries, taxes and charges constitute the primary source – in Portugal over
half the tourism budget comes from taxes on gambling, while in Costa Rica over half the
budget comes from a flat rate entry charge with much of the rest coming from taxes on
tickets for travel originating or purchased in the country. Policy tends to vary as to whether
funding secured from specific sources is dedicated to pre-determined beneficiaries and
causes.
National tourism policies, strategies and plans

The level of attention and support that a country gives to tourism is influenced by how
it is perceived in the context of overarching national policies, especially for the wider
economy and development. In Mexico, for example, the National Development Plan 2013-2018
recognises the importance of tourism in creating jobs and supporting the conservation of
heritage. In Japan, the Japan Revitalization Strategy 2016 identifies tourism as one of ten
key pillars; in Slovakia it is identified in the government manifesto; and in Switzerland it
plays a key role in the New Regional Policy.

Box 1.4. Supporting the development of tourism infrastructure

in New Zealand
Record tourism growth in New Zealand has led to increased yields across the sector.
However, it has also placed pressure on the capacity of local public infrastructure and
services in some areas, and particularly in those communities receiving high visitor
numbers relative to the local population. Furthermore, the fact that economic benefits can
accrue to areas other than those where costs fall, has left some communities unable to
respond to these pressures in a timely manner, and consequently to concerns about visitor
numbers. Other regions claim that their inadequate existing infrastructure is a constraint
on their ability to realise their tourism growth potential. These factors have combined to
drive an expectation for central government intervention.
To respond to these challenges, the government established the Regional Mid-sized
Tourism Facilities Grant Fund (MFF) in 2016. The MFF comprised NZD 12 million
appropriated over four years. Across the funding two rounds, NZD 8.28 million in co-
funding was provided for 42 tourism-related infrastructure projects including carparks,
toilets, sewerage and water works. The projects have also enhanced amenity for local
residents.
The MFF was closed in 2017 with the remaining funds transferred into the new and
larger Tourism Infrastructure Fund (TIF) announced in the 2017 budget. The TIF provides
up to NZD 25 million per year over four years as co-funding for the development of
tourism-related infrastructure, particularly in areas where the local population is too small
to completely fund the work themselves. It aims to protect and enhance New Zealand’s
reputation both domestically and internationally by funding infrastructure which
contributes to quality experiences for visitors. A panel of independent advisors and sector
representatives will assess and recommend eligible projects to the Minister of Tourism,
who will give final approval to the projects to receive funding.
A large majority of countries have published dedicated medium or long term tourism
policies and/or strategies. Most are for periods of five years, but some countries have policy
frameworks for ten years or more, on which shorter strategies and plans are based
(e.g. Ireland). It is common for policy and strategy documents to set out a combination of
principles, policies and objectives, which then form the basis for identified actions. The
preparation and launch of new policies and strategies can serve to galvanise the sector and
stimulate a range of new commitments and agreements, as with Canada’s New Tourism
Vision, and Italy’s new Strategic Plan for Tourism (Box 1.5).
There are many similarities between countries in the direction of tourism policies and
areas of priority and focus. Key recurring themes include:
● Increasing competitiveness while also pursuing the sustainability of the sector,
● Improving the quality of infrastructure, facilities and services,
● Strengthening the country’s international position and distinctiveness as a tourism
destination,
● Improving the conditions for investment and growth and supporting innovation,
● Addressing seasonality of demand – increasing tourism in the off-season,
● Spreading tourism geographically – encouraging development and spending in areas of
high potential,

Box 1.5. A new Strategic Plan for Tourism in Italy

The Italian National Strategic Plan for Tourism (Piano Strategico del Turismo-PST) for
2017-2022 has been developed by the Ministry of Cultural Heritage, Activities and Tourism.
It brings together all tourism operators in Italy with a consistent and coordinated
approach, improving policies in terms of both demand and supply, and putting tourism
programming at the centre of national policies. The PST takes on a new and innovative
approach based on an open and participative method to share strategies, targets and areas
of intervention, with the aim to become a stable system of governance for the sector. It
aims to deliver two primary objectives, namely, enhancing Italy as a country of art and
culture, and ensuring effective governance of tourism development.
Three strategic principles underpin the Plan’s targets and measures:
● Sustainability is a key element of competitiveness in tourism, which must therefore
help to preserve natural resources and landscapes, and attract investment for their
protection. A sustainable vision for tourism is geared towards sharing opportunities
throughout the country and throughout the year, bringing employment to new as well
as established destinations.
● Innovation covers tourist destinations, business models, professional profiles, marketing,
communication, pricing, and the quality of services and products. Digitalisation is at the
frontier of innovation, cutting across the distribution of information, decision-making
by travellers, and the development of communication tools.
● Accessibility includes the provision of access to places (including less-visited areas),
using sustainable mobility systems, giving all people the chance to benefit from tourism
(regardless of their age or health conditions), and giving tourists the opportunity to fully
appreciate the beauty and uniqueness of the heritage they are visiting (www.pst.
beniculturali.it/).
● Addressing labour supply shortages and increasing levels of skills and training,
● Attracting new source markets and meeting their needs,
● Improving transport and connectivity,
● Improving knowledge and data on tourism.
A number of trends in policy are discernible in the last two years, with new or
enhanced emphasis being placed on the following areas:
● A further shift away from the dominance of increasing tourism volume towards enhancing
levels of spending and value retained from tourism as well as achieving other social
benefits. In Korea, for example, the new administration introduced a policy direction
emphasising “tourism welfare” and promoting tourism as mechanism to enhance quality
of life as well as the national economy. Global concepts of inclusive growth are being
increasing reflected in policies, in relation to engagement of communities, provision of
quality jobs and providing access for all.
● Concern about the pressures resulting from rapid and often unplanned tourism growth in
certain locations, with a threat of “over-tourism” and the need to focus on management
solutions and address issues of carrying capacity. In Iceland some measures are being
taken or considered to manage growth and improve visitor handling (Box 1.6).
● The imperative of embracing digitalisation in many areas of tourism development,
management and marketing.

● Greater awareness of safety and security issues affecting visitor decisions and wellbeing,
and the need to ensure that they are addressed in travel to and within destinations.
Box 1.6. Tourism management in Iceland

Tourism management issues are becoming more prominent in Iceland’s tourism policy
as the rapid increase in tourist arrivals continues. In addition to measures intended to
maintain Iceland’s competitiveness as a destination and improve the sector’s productivity
and profitability, the Government has recognised that management measures are needed
in order for tourism to continue to thrive in harmony with the community, environment
and other sectors of the economy. Measures need to be applied at many levels to moderate
the growth tourist arrivals, increase regional dispersion, reduce seasonality, and better
manage visitor flows at popular tourist sites. The following actions defined in Iceland’s
official Road Map for Tourism 2015-2020 have been implemented to improve the
management and distribution of tourists around Iceland:
● A Route Development Fund has been established to encourage direct international
flights to other airports in the country,
● Destination Management Plans are being prepared that take into account the
distribution and management of tourist flows in each of the seven regions,
● Reforms to the Tourist Site Protection Fund together with a new 12-year National
Infrastructure Plan for the Protection of Nature and Sites of Cultural and Historical Value,
to improve infrastructure and encourage new developments in less visited areas,
● New legislation that allows local authorities to apply parking fees in rural areas in order
to better control tourist numbers at popular sites and for maintenance,
● Revision and coordination of official tourist information provision to improve quality of
service and the safety of visitors.
Other initiatives have been implemented to help manage the impact of tourism on the
local community and environment. These include new legislation on home sharing, which
aims to help level the playing field in the short-term rentals market, and raising the
accommodation tax, which will provide additional funds for infrastructure at tourist sites
around the country. In addition, Funding for various research projects e.g. on tourism
carrying capacity, the formulation of sustainability indicators and a market segmentation
exercise that aims to help increase rates of return in the sector.
Regional and local destination plans

A significant dimension of many national tourism policies is the increasing emphasis
on regional and local destinations as the location for planned and integrated action.
A number of countries have been implementing programmes based on selected local
destinations, identified on account of their tourism potential or economic need. This is
seen as an effective way of focusing resources and harnessing stakeholder engagement.
Some examples are listed in Box 1.7.
Destinations, in turn, require their own policies and plans in order to achieve successful,
well supported and integrated tourism development. Frameworks and guidelines for this can
be provided from central government. An example is the programme of Destination
Management Plans in Iceland, referred to in Box 1.6, which are joint policy statements

Box 1.7. Destination frameworks providing a focus for tourism

policy and action
In Chile, work is underway to improve the management and sustainability of 10 selected
destinations to improve industry competitiveness and increase opportunities for
participants in the tourism value chain.
In Hungary, four priority tourism areas have been nominated. In each, the steps are to:
define the area; prepare a destination management plan and programme; and establish a
new destination brand.
In Mexico a new programme, Zones for Sustainable Tourism Development, has been
launched, based on destination plans implemented with local governments in selected
destinations.
In Slovenia, the country has been divided into four macro-destinations for the
development of tourism, each with a distinctive theme and identified potential.
In Sweden, five destinations participated in the Sustainable Destination Development
Initiative, undertaking actions to establish new products and to improve quality,
sustainability, skills and knowledge sharing.
intended to steer growth and development, define stakeholders’ roles and specify actions
and resources.
Destinations have also been the recipients of various forms of support and assistance
in the delivery of their plans and in the execution of development projects and other
initiatives. The Tourism Infrastructure Fund in New Zealand provides one example
(Box 1.4), another is the Valorizar programme in Portugal (Box 1.8). In the United Kingdom,
the Discover England Fund provides project funding of GBP 40 million between 2016/17 and
2019/20 to stimulate international visits to destinations across England.
Box 1.8. Valorizar – Enhancing destination value in Portugal

The Valorizar Program aims to support investment and enhance the quality and value of
Portugal as a tourist destination. The programme was created specifically to address the
challenges associated with reducing seasonality and achieving a more balanced
distribution of demand throughout the country. With an annual budget of EUR 30 million,
Valorizar provides financial support for the regeneration and rehabilitation of public spaces
for tourism purposes, the development of new tourism products, and leverage value from
Portugal’s unique cultural and natural heritage.
Valorizar comprises three funding programmes:
● Enhancing tourism value in the interior – supporting development of tourism offer in
the inland regions of Portugal and increasing their attractiveness,
● Accessible tourism – promoting adaptation of the tourism offer enabling Portugal to
become a tourist destination increasingly accessible to all,
● Wifi projects in historical centres – enhancing the visitor experience in destinations and
promoting innovation.
By June 2017, Valorizar had supported over 100 projects, representing investment in excess
of EUR 64 million.

Development and marketing of distinctive products and destinations

Successful tourism depends on the provision of tourism products and destinations that
provide attractive, stimulating and satisfying experiences in line with market trends and
visitor expectations. It also relies on their effective and efficient promotion. These
requirements are well understood. Countries engage in many actions to identify the needs of
established and new source markets, identify and develop tourist offers based on distinctive
themes and experiences, and run effective and creative marketing campaigns.
This activity also needs to deliver on identified strategic objectives and priorities.
Particular emphasis has been placed by many countries on the need to enhance
competitiveness through the distinctiveness of the offer, to spread interest and spending to
less known areas, and, most especially, to address seasonality and gain more business at
different times of the year. The strategic attention given to digitalisation also plays a strong
part in the tactical actions pursued.
Strategic and thematic approaches to products and destinations

Many countries point to their cultural and natural heritage as lying at the heart of their
visitor appeal. Policy demands that these precious assets are conserved in their own right
as well as in the interests of tourism. Various actions are also being taken to gain further
market advantage from them, especially to more evenly spread visitor spending
geographically and throughout the year.
A recurring theme is the development of more opportunities focusing on nature based
tourism, wilderness areas and outdoor activities. A number of countries, including Canada
and Chile, have active programmes to strengthen their destination image through links to
their national parks. Walking and cycling are seen as providing important market
opportunities in many countries with very different terrain and landscapes. Projects
include the further extension of Nga Haerenga, the New Zealand Cycle Trail, and additions
to that country’s set of Great Walks, promotion of the award-winning walks network in
Luxemburg, the development of cycle trails in Israel, and the continued development of the
European cycle route network – Euorvelo. Nature-based tourism has proved to be successful
as a sustainable development tool in rural parts of Romania and other countries in Central
and Eastern Europe and it is strongly supported in their policies.
More widely, rural and community-based tourism has been encouraged in various
destinations, partly to create distinctive alternative visitor experiences but also to support
local livelihoods. In Germany, an ongoing project entitled “The destination as a stage: How
can cultural tourism make rural areas successful?” has received considerable interest and
has been extended to six regions, which are coached to function as role models for others. By
bringing people involved in culture and arts together with destination management
professionals the project aims to develop unique and lasting cultural brands, create resilient
networks of relevant stakeholders, and identify sustainable financing schemes. In Peru, an
initiative has focussed on strengthening the use of local produce and handicrafts in the
tourism supply chain (Box 1.9), and in South Africa the Department of Tourism is developing
a framework for “precinct development” with an emphasis on townships and rural tourism.
A number of countries have sought to further diversify their tourism offer by focusing
on additional and alternative markets that enable them to strengthen occupancy in the low
season and attract higher spending visitors. Health and wellness tourism is being pursued
or expanded for these reasons in various countries, including Mexico, Latvia, Lithuania and

Box 1.9. Strengthening local tourism supply chains in Peru

The inclusive development initiative Al Turista, Lo Nuestro promotes the direct
incorporation of local products (agricultural, livestock, fishery, handicrafts, etc.) in the
provision of tourism services. It aims to promote tourist supplies that incorporate quality
regional services and products purchased directly from local entrepreneurs into the
tourism value chain.
The Ministry of Foreign Trade and Tourism has undertaken studies and initiatives on the
market demand, the offer and business proposition, and relevant aspects of heritage,
complemented with a diagnosis of the gastronomic offer of possible communities to
benefit, in order to start a process of capacity building, promotion and marketing.
The initiative has benefited producers in four Peruvian regions (Cusco, Arequipa, Puno,
and Ica) with the participation of rural associations, producers and tourist service
providers. In 2018, the initiative will be implemented in four new regions of the northern
Peru (Tumbes, Piura, Lambayeque and La Libertad) contributing to the economic recovery
of the citizens affected by the El Niño coastal phenomenon.
Turkey, where the Ministry of Culture and Tourism has selected three Thermal Tourism
Development Regions to implement pilot projects.
The development of alternative and distinctive products can influence investment in
individual businesses and thematic groupings in all parts of a country. Distinctive products
and thematic visitor experiences may also be created from particular types of landscape
and associated cultural heritage. An example is the new creation of a desert tourism
product in and around the Negev in southern Israel (Box 1.10).
Box 1.10. Developing the desert product in Israel

The Israeli desert has a vast historic significance and provides many opportunities to
promote tourism and the well-being of all desert residents, but the “Desert Tourism” product
is at an early stage of commercial development in Israel. Most incoming tourists to Israel
tend to follow a classic route through Jerusalem, Tel Aviv and the north, with an itinerary
that rarely includes the areas of Negev (desert), Eilat and the Arabah (known in Hebrew as
Arava, to the south of the Dead Sea basin). While local initiatives have increased the scope of
tourist services in these areas in terms of accommodation, catering, art and training, many
of these products are not yet available to incoming tourists, due to poor access, a lack of
information available in foreign languages and an absence of essential tourism services such
as outdoor water sources and shaded rest areas. The Israel Ministry of Tourism is working to
create a desert product based on the new Ilan Ramon airport, which will brand and market
the desert area, including new routes in a rich variety of locations throughout the desert,
developing new tourism sites and upgrading existing ones.
The goal of this project is to increase the number of tourists from abroad who land in
Eilat and position it as a tourism hub in the region, increase their stay in the southern
regions, and contribute to reducing seasonality.
For similar reasons, events are highly valued attractions. As key drivers of demand, they
act as catalysts, animators and image-makers for both business and leisure travel. The close
links between major events and tourism are clearly recognised by many cities, regions and

countries that have identified event tourism as a specific priority within long-term tourism
strategies (e.g. Australia, Canada, the Czech Republic, Denmark, Estonia, France, Ireland,
Japan, Korea, Latvia, New Zealand, Portugal, Slovenia, Spain, Switzerland, Turkey and the
United Kingdom), with many devoting considerable resources to develop, attract and support
major events in order to enhance destination attractiveness and competitiveness, and
spread the benefits of tourism to regional areas (OECD, 2017a). Business and conference
tourism has been identified as a policy priority in certain countries, addressing both supply
and demand as in the example from Luxembourg (Box 1.11).
Box 1.11. A comprehensive approach to the MICE market in Luxembourg

The government of Luxembourg has highlighted the importance of conference and
business tourism for the Grand Duchy and the need to improve coordination in this
segment and raise external visibility. With this in mind, in 2015 the MICE Luxembourg
cluster was established by the Ministry for the Economy.
Based on a SWOT analysis of the sector, a common MICE strategy has been developed,
setting out the main approach to development, defining markets and targeting clientele, and
describing the promotional tools to be used. Alongside the cluster’s technical committees,
the government is working with the sector to implement a number of development projects,
including a timetable for MICE events, business quality guidelines, and a Green Meetings
project designed to promote and showcase ecologically responsible events.
The flagship promotional project is the prestigious biennial “Meet Luxembourg” event,
introduced in 2016 to invite potential MICE clients from target markets, present the
advantages of Luxembourg as a destination, and bring together supply and demand.
The ultimate goal is to create a national conference bureau for the MICE sector. In
addition to serving as a single point of contact, the bureau will play a key role in
Luxembourg’s economic promotion linked to priority sectors of the economy which have
been identified as particularly fruitful sectors for conferences and events.
Effective marketing and promotion

Tourism marketing is a primary function of National Tourism Organisations. Marketing
activity tends to be informed by general tourism policies and strategies although sometimes
separate Marketing Strategies are prepared. Recent trends in the approach to marketing that
are generally apparent but specifically illustrated in different countries include:
● Awareness of the rapid growth and future potential of a number of emerging markets,
especially China, but also some other countries primarily in Asia. Almost all countries,
in all continents, have identified opportunities in these markets and have built them
into their strategies.
● Recognition of the need to maintain diverse source markets in order to avoid over-
dependency and risk from unexpected downturns in certain markets. This is particularly
referred to in the marketing policies in Turkey and the Philippines but is widely
applicable.
● A growing interest in seeking to identify and attract high-end, independent markets.
Spain, for example, is focusing on the “cosmopolitan” segment, who might be described
as having an interest in culture, art, unique experiences, gastronomy and shopping.
Korea is targeting new independent Chinese travellers, with simplified visa processes.

● An increasing focus on digital strategies, with digital platforms opening new partnership
opportunities and routes to market with reduced costs compared to traditional marketing
approaches.
While there is downward pressure on public sector funding for marketing, budgets have
been broadly maintained, partly reflecting the extremely competitive nature of the global
tourism market. Nevertheless, the need to further develop opportunities to leverage and
stimulate private sector funding for destination promotion is widely recognised and
pursued. Challenges for countries include how to identify commercial partnership
opportunities, effectively demonstrate the reach, impact and effectiveness of value-in-kind
contributions, and increase recognition of in-kind benefits as a relevant form of return-on-
investment (OECD, 2017b). Some countries have shown flexibility in boosting resources for
marketing in response to rapid changes in circumstance – for example an emergency fund
for the promotion of tourism was established in France in the face of a market downturn
following the terrorist attacks in 2016.
Box 1.12. Developing and promoting regional brand experiences in Ireland

In an innovative response to declining visitor numbers and market share in the West of
Ireland, where tourism is a vital contributor to local economies, Fáilte Ireland has
developed distinctive regional branding experiences. The Wild Atlantic Way was
developed in 2014 as a new experience and presents the West Coast of Ireland as a
compelling international tourism product of scale and singularity. Within this over-arching
brand, individual destinations and businesses can trade collectively in the international
marketplace with much greater visibility and clear messaging. In the early stages of
development, international visitors had low awareness of the Wild Atlantic Way prior to
arrival, despite indicating very positive experiences on the ground, however, following
international marketing efforts, awareness increased significantly. In 2015, Fáilte Ireland
set out a strategy, implementation framework and programme for sustainable
implementation of the Wild Atlantic Way over the period 2015-2019.
Building on the success of the Wild Atlantic Way, Fáilte Ireland developed further
experience brands in 2015. Ireland’s Ancient East was developed building on international
consumer research and preliminary brand development work undertaken by Fáilte Ireland,
in collaboration with trade partners. This resulted in a distinctive “story-based” approach,
ensuring that the experience of Ireland’s culture, history and heritage is brought to life by the
stories found at its tourism offerings. Also in 2015, Fáilte Ireland launched a new brand for
Dublin – A Breath of Fresh Air, together with a destination marketing campaign focused on
Great Britain, Germany and France.
These regional branding experiences have proved very successful and contributed to
increased visitor numbers to the regions covered. They continue to gain traction
internationally and are central to Ireland’s overseas marketing effort.
A particular area of creativity in tourism marketing has been in the identification and
promotion of new destination brands. In Russia, re-branding has involved engagement of
local residents in order to raise awareness and support for the brand. Sub-national
branding, partly linked to newly identified or prioritised areas of tourism development and
involving new product concepts and offers to support the brand, has been a strong feature
in some countries. Examples include the Netherlands, where they have recognised that as

a country the tourist offer is made up of a number of small key cities, and have adopted a
“HollandCity” branding & marketing strategy, and Poland, with the House of Polish Tourism
Territorial Brands, and the success of culture and corridor-based experience brands in
Ireland (Box 1.12).
Creative marketing initiatives and campaigns have been adopted in some countries
that have picked up on strategic policy priorities including the need to promote visits out
of season, as in the Croatia 365 campaign, and developing cross-border partnerships such
as Visit Arctic Europe, and utilising social media to tap into the high-growth markets.
Promotional activity continues to involve traditional tactical approaches such as working
with travel agents and tour operators, engagement with travel media and journalists and
attendance at travel shows. However, on-line marketing and sophisticated use of social
media are now at the forefront of most tourism marketing campaigns. For example,
Destination Canada’s Millennial Travel campaign aimed to leverage social media channels
(e.g. Instagram, Facebook, Pinterest, Twitter and YouTube) to build awareness and interest
in visiting Canada, by being present where travellers are speaking with other travellers and
supporting the conversation through content distribution.
Indeed, many NTOs are placing digital at the core of their methodology. For example,
VisitDenmark, Destination Canada, and NBTC Holland Marketing, are seeking to build new
partnerships with online tour operators (OTAs) and other digital platforms such as Airbnb,
while Visit Portugal has adopted a 100% digital approach across all marketing activities
(OECD, 2017b).
A focus on digitalisation
The digital revolution has had a profound and ongoing impact on tourism. It presents
both opportunities and challenges for destinations and individual tourism businesses, who
need to fully embrace new technology if they are to remain competitive. This is well
recognised in tourism policies and strategies. While all countries are taking relevant
action, some have commissioned studies or prepared specific plans and programmes on
digitalisation in the tourism sector, including Austria (Box 1.13), Bulgaria, Croatia,
Denmark, Italy, Korea, Mexico, Russia, Spain, Switzerland and Turkey.
Box 1.13. A Digitalisation Strategy for Austrian Tourism

Digitalisation is transforming the tourism sector at a rapid pace, with strong
implications on both, demand and supply. In view of an active role in this process, the
Ministry of Science, Research and Economy together with the Austrian NTO and the
Federal Economic Chamber launched a digitalisation strategy for Austrian tourism in
September 2017. The strategy has been developed in an open innovation process with the
involvement of many stakeholders (national and regional, industry experts from tourism,
technology and the creative economy, universities and research, etc.) and pursues three
strategic objectives i) to shape digital change ii) to strengthen the innovation capacity of
enterprises and iii) to create skills and processes for digital transformation. The strategy
defined 22 measures to meet these objectives including nationwide coverage of broadband
technology, good information and co-operation structures for data management, support
for digital innovation in SMEs, as well as for the development of digital skills for the sector.
Source: Ministry of Science, Research and Economy.

There are two main areas in which digitalisation is having a profound impact on actions
to develop, manage and market tourism. The first is in the process of communicating with
tourists. There are various dimensions of this that countries are having to address, including:
all forms of web-based presentation of marketing messages and information; effective use of
social media in influencing choice and sharing experiences through personal exchange but
also via commercial channels; the growing importance of customer generated rating of
tourist facilities; the increasing dominance of Online Travel Agents in handling travel
purchases, with significant impact on business performance; and the rapidly growing use of
mobile technology in delivering instant information to visitors during their stay. A further
aspect of digitalisation is the opportunity it presents for new and highly creative ways of
enhancing the visitor experience, including the growing use of virtual reality (Box 2.3), not
only in the interpretation of attractions but also to add new dimensions to branding and
marketing, such as in the Spirit of Scotland campaign in the United Kingdom.
The second major impact of digitalisation is in opportunities it presents for handling
transactions and in the capturing and processing of information and data on tourism
supply and demand. This can include use of new data sources and larger volumes of more
complex data. Work in this area in the tourism sector is still in its infancy. A number of
countries are embarking on new projects for the systematic handling of digital
information, such as the Integrated Tourist Information System in Bulgaria and the Data
Tourism project in France. An example of an integrated approach is the eVisitor platform in
Croatia (Box 1.14).
Box 1.14. A national online information and management

platform for Croatia
In 2016, the Croatian National Tourist Board (CNTB) established eVisitor as a central
platform for tourism data manag ement. A comprehensive database of over
160 000 accommodation providers enables online check-in and check-out by all businesses
as well as tourist offices (national/regional/local) across Croatia. Today, eVisitor is used not
only by the CNTB and industry players but also by the Ministry of Administration, the
Ministry of the Interior, Customs Administration and Inspection Services, the Central Bureau
of Statistics, and other stakeholders involved in shaping, improving, and monitoring the
tourism sector.
All accommodation service providers register guests directly via the web interface,
irrespective of the device, browser or operating system. eVisitor automatically compiles the
guest booking and calculates the accommodation fees, reducing the need for additional
administrative effort or the review of documents in paper form. All data is available with no
extra cost in real time with the appropriate authorisation. Participants have access to complex
reports, which can contain one or more criteria including length of stay, location, gender, age,
country of residence, type of facility, destination etc. This creates a synergistic effect for all
Croatian tourism stakeholders and contributes to ensuring their competitiveness.
The system supports the sharing of information for the purpose of monitoring, reporting,
statistical and marketing evaluation, and planning. As well as processing, analysing and
reporting real time data, the system controls the collection of tourist taxes. The service has
been carefully designed to benefit both local and county tourist boards as well as
accommodation providers.

In their digital strategies for tourism, countries will need to find ways to fill the various
gaps that are likely still to exist in their systems. These include any infrastructural and
connectivity deficiencies, for example the provision of fast broadband network, easy
access to wifi while travelling, and the removal of barriers caused by high roaming charges.
A number of projects have focused on the need to enhance digital skills and access to
technology by small tourism businesses. Capacity building amongst stakeholders is a key
part of the programme to expand digitalisation of tourism in Austria, for example.
The all-encompassing nature of digitalisation has led to this issue generally becoming
more central to the way that destinations are perceived, planned, managed and identified.
The concept of a “Smart Destination” has be gaining traction, defined as an innovative
tourist destination using state-of-the-art technology for its sustainable development. The
world’s first International Congress on Smart Destinations was held in Spain in 2017,
where the concept is being pursued through a Smart Destinations Project (Box 2.4).
Supporting a competitive, sustainable, and inclusive tourism industry

Countries in all parts of the world face common challenges in overcoming barriers to
the competitiveness of the tourism sector and in strengthening its resilience and
sustainability. Essentially this is all about improving openness and the flow of visitors,
knowledge and resources. Key priorities, reflected in policies and actions on the ground, lie
in the fields of improving transport, strengthening accessibility in all its forms, improving
quality, stimulating investment and business performance, and expanding skills, careers
and employment opportunities in tourism.
At the same time, it is widely recognised that tourism, when built upon broad
stakeholder engagement and sustainable development principles, can contribute to more
inclusive growth through the provision of employment and economic development
opportunities in both urban and rural areas. It can also raise awareness of cultural and
environmental values, and help finance the protection and management of protected areas,
and the preservation of biological diversity. In recognition of tourism’s potential to advance
the universal 2030 Agenda for Sustainable Development, 2017 was declared International
Year of Sustainable Tourism for Development.
Improving transport and seamless connectivity, reducing barriers to travel

Efficient transport infrastructure and services are essential to maintaining the flow of
visitors that provides the lifeblood of the tourism sector. To be successful in developing their
tourism economy, countries must establish good connections to existing and potential
source markets and provide convenient, efficient and enjoyable ways for visitors to move
around within the destination. Seamless travel involves the removal of all kinds of
unnecessary impediments, be they physical, economic, legal or administrative or resulting
from poor perceptions, insufficient information and failure to provide the necessary
encouragement, assistance, security and welcome. Key factors to enhance the visitor
experience include: good accessibility; efficient visa and customs processing; convenient
multimodal transport options to access destinations; efficient connections between
interregional and local modes; integrated ticketing; multilingual user information and way-
finding; and; ease of access for travellers with limited mobility (OECD, 2016).
Complex visa and entry procedures are well proven inhibitors of travel. Despite
heightened security concerns in many parts of the world, countries have continued to

introduce swifter and more user-friendly processes. The United States has further expanded
the use of trusted traveller programmes, self-service kiosks, improved signing and queuing
systems and other technological advances in arrival processes at ports of entry. In the United
Kingdom, driving continuous improvement is one of five top priorities in the Government’s
Tourism Action Plan. France has set lower minimum times for the delivery of visas to ten
new countries in 2018 and for clearance at entry points. Russia has relaxed its visa
requirements for selected short tours of up to three days. Improvements in visa processes
and other aspects of travel facilitation can be assisted by bilateral agreements, such as those
negotiated between China and many countries, including Australia (Box 1.15), New Zealand,
the United States and the 28 member countries of the European Union.
Box 1.15. Streamlining access for high growth markets in Australia

Australia has progressed reforms to streamline visitor visa processing in key source
markets. These include: trialling a 10 year multiple entry visitor visa for eligible Chinese
nationals and three year multiple entry visas for nationals from India, Thailand, Viet Nam
and Chile; online lodgement for applicants from China and India; and trialling a user-pays
fast-track processing option in China, India and the United Arab Emirates.
The Australian Government recognises China as an important driver of tourism growth.
The Approved Destination Status (ADS) scheme is a bilateral arrangement between the
Chinese Government and a destination country that establishes a regulatory framework for
Chinese tourists to undertake group leisure travel to that country. The tourism relationship
between Australia and China is supported by a Memorandum of Understanding (MOU) on
tourism cooperation in areas such as marketing and supply side issues such as labour and
skills development, investment, research and infrastructure. Under the MOU, an annual
Australia-China Tourism Dialogue is held to report on the status of activities and determine
future areas of cooperation in the tourism sector. 2017 was designated as the China-
Australia Year of Tourism.
Liberalisation of air transport continues to be actively pursued in various destinations.

A number of countries have active programmes to secure new routes, such as Australia,
Brazil, Greece, Iceland, and Israel. The importance of working with local airport authorities
on route development and the tangible growth that can be achieved as a result is
demonstrated in Malta (Box 1.16).
The focus on tourism transport is by no means limited to air connectivity. Some
countries have been pursuing initiatives to improve a range of different infrastructure and
services. Improving multi-modal air, land and sea based transport networks is a key
priority in the Philippines. In the United Kingdom, a key government priority for tourism is
to make it easier for international visitors to explore beyond London by rail, bus and coach.
In New Zealand, the government releases a Government Policy Statement (GPS) on land
transport to signal government priorities that influence transport investment decisions
across the country. Tourism was emphasised in the draft GPS 2018 to ensure that roads and
supporting infrastructure used by visitors were fit for purpose. The draft GPS 2018 is
currently being reviewed to ensure it reflects current government priorities.
Provision of infrastructure to help visitors travel and explore is not only motivated by a
desire to improve connectivity and growth. A number of countries, including Austria, Italy

Box 1.16. Promoting strategic air connectivity to Malta

Given the small size of its domestic tourism market, Malta’s tourism industry almost
exclusively depends on foreign inflows for its sustained wellbeing and profitability, which in
turn relies on air transport. Travellers from European short-haul markets are increasingly
choosing destinations that are accessible with direct flights, ideally more than weekly, from
the airport closest to their place of residence. The Malta Tourism Authority has recognised
the strong relationship between growth of inbound tourism and the number of routes and
seat capacity, and this is now an important pre-requisite for its marketing activity.
In response, Malta has embarked on a strategy to increase the number of direct air
services, which have risen from around 45 in 2006 to over 92 in 2016. This significant increase
contributed to record growth in tourism volume, overnights and expenditure in almost every
year of this period.
The Malta Tourism Authority has developed a strong and synergetic relationship with
the island’s only international airport, Malta International Airport. These two
organisations share market intelligence, devise joint strategies and complement each
other’s activities to ensure the efficient use of resources and maximise returns.
and Slovenia, have been pursuing mobility projects based on walking, cycling and the use of
public transport, partly as attractive tourism products in the their own right but also in line
with policies to reduce traffic congestion and the carbon footprint of tourism related travel.
In Italy, 2016 was designated as the year of Italian paths (I Cammini d’Italia) with the objective
of enhancing the value of cultural routes, assisted by improved information and marketing.
Expanding domestic tourism and providing access for all

There is considerable variation between countries in the relative importance of the
domestic market to the tourism economy. In many developed countries it can be many times
more valuable than the international market in terms of total visitor spend. Various
countries are looking to increase domestic tourism, recognising its importance in
strengthening business performance and securing profitability. A strong domestic market
can reduce the risk of over-dependence on some international markets which can be more
volatile. It may also help to address seasonality, although in some countries domestic
tourism is in fact more seasonally peaked. There are also sustainability arguments for
pursing the domestic market, which may generate lower transport-related carbon emissions
per visitor, although this is not often recognised in policy.
Countries that have reported particular themes and initiatives in the domestic market
include Chile, Germany, Italy, Korea, France, Mexico, Poland, Slovakia, South Africa, Turkey,
the United Kingdom and the United States. Some have engaged in general marketing
campaigns, such the “Let’s All Travel Through Mexico” promotion which, in addition to
encouraging domestic tourism, also aims to promote the diversification of products and
reduction of seasonality. The “Poland See More – Weekend at half price” campaign was
developed by the Ministry of Sport and Tourism and involves a wide range of attractions,
activities and accommodation providers coming up with offers on chosen weekends. In
Turkey, the Ministry of Tourism is focusing on growing domestic tourism by giving support to
appropriate fairs and events; it also works in co-operation with the Association of Turkish
Travel Agencies, through an “early reservation campaign” offering low prices for domestic
visitors making reservations four to seven months in advance.

Some initiatives to promote domestic tourism are not only undertaken for economic
purposes but are also closely linked to policies that aim to provide all local residents with
opportunities to have holidays irrespective of their personal circumstances, as part of a
social tourism agenda. This can involve the provision of subsidised offers aimed at
particular groups and work to incentivise, improve and promote the provision of highly
accessible facilities. Some country examples are provided in Box 1.17.
Box 1.17. Tourism for all: Country approaches

In Belgium-Flanders the policy to make tourism available to all Flemings has led to work
in three areas: making Flanders a leading family-friendly heritage destination; expanding
the Holiday Participation Centre as a leading reference point for people with budgetary and
care needs; and providing high quality accommodation for a range of disadvantaged groups.
In Chile, three programmes have been established to provide opportunities shaped to
the needs of different segments. The Third Age Vacation Programme promotes internal
off-season tourism to seniors, retirees, pensioners and people with reduced capacity,
through a government subsidy that reduces the cost of tour packages. The Study Tour
Initiative is aimed at students in educational establishments receiving state subsidies. The
Family Tourism initiative provides vacation opportunities for vulnerable families based on
all-inclusive packages in certain regions.
In France, promoting access to holidays, and especially for families, seniors and people
living with a disability, represents both a social objective and a factor in enhancing the
competitiveness of destinations. The Tourisme et Handicap brand certifies sites (hotels,
restaurants or other tourism provider) that develop a tourism offer adapted to people with
a disability, including the provision of reliable information. To date, more than 5 500 sites
have been labelled. The Destination pour Tous brand values the tourist and service offer of
an entire territory that guarantees accessibility throughout the entire travel chain, as well
as the financial accessibility of the offer.
In Germany accessibility for all remains a tourism policy priority, including the provision
of comprehensive and reliable information concerning barrier-free offers available for
people with disabilities. Such information can also benefit senior people and families with
small children. The “Tourism for All” project is funded by BMWi to support the creation of a
nation-wide labelling and certification system including a central database. Licence holders,
such as state tourism organisations and supra-regional service providers, will be able to link
their digital marketing platforms to the database, providing an incentive for the industry to
invest in accessible tourism and create a self-financing system based on licence and
certification fees.
In Korea a vacation support plan seeks to ensure that employees of SMEs take adequate
vacation leave. It involves a pre-paid debit card that is 25% funded by government, 25% by
the employer and 50% by the employee.
Strengthening business performance, regulation, quality and investment

Policies to improve the competitiveness of tourism need to give significant attention
to the performance and quality of tourism businesses and the level of investment in the
sector. This is partly about improving the overall business environment, but also includes
actions to identify and promote quality and to provide various forms of incentive and
support.

A number of countries have been taking action to reduce the regulatory burdens
relating to the operation of tourism businesses and making investments, sometimes as
part of wider legislative change in the sector. Brazil has been reviewing 118 proposals to
modernise its tourism law; Malta has undertaken a major exercise to ensure that its
regulatory framework is better equipped to react and adapt to the rapid change in the
sector; and Slovakia has undertaken a study of regulatory impacts on tourism businesses,
especially SMEs, leading to actions to reduce them. In Greece, a systematic exercise has led
to a new framework for tourism legislation (Box 1.18).
Box 1.18. A consolidated framework for tourism legislation in Greece

A comprehensive project, focusing on the “Codification of Tourism Legislation” in Greece
was recently completed and set in operation. The project brought together all the legislation
and regulations pertaining to tourism from 1914 to the end of 2016, with the purpose of
reducing administrative-regulatory barriers, improving the business environment, and
thereby promoting transparency and increased investment in the tourism sector.
The regulations of existing tourism legislation were consolidated and systematically
classified so that all tourism stakeholders could be aware of the provisions in force. The
following framework was used for legislation covering:
● Organisational Structures of Greek Tourism – central and regional tourism entities and
services, including public and private bodies and associations,
● Tourism enterprises with infrastructure – all types of accommodation, tourist attractions,
leisure complexes etc.,
● Other tourism enterprises and activities – e.g. specific forms of tourism transport and
retailing,
● Tourism professions and education – tourism training bodies, vocational schools, tourist
guide training schools etc.,
● Contractual relations in tourism – all laws relating to contracts and matters such as
hotelier/customer relations, timeshare etc..
The major outcomes of the project are a consolidated legislative framework presented
through a free access platform to Greek citizens, businesses and tourism stakeholders,
which provides clarity over the required procedures and documents for each administrative
action, and dramatically reduces search and retrieval times.
The ongoing rapid development of informal tourism services, especially online

accommodation platforms, has led to the establishment of many additional micro
businesses in the sector. In many countries this has been welcomed and sometimes it has
helped to address an under-supply of accommodation. However, actions are now being taken
in various destinations to regulate this form of tourism in order to reduce any unfair
competitive advantages, ensure the welfare of tourists and local residents, and address
negative impacts on the local housing market. This has included a comprehensive study in
Germany, new laws on the registration of furnished rentals in France in areas where housing
is scarce, and new regulation of private lodgings in Japan (Box 1.19).
Another area of action and intervention concerning the operation of tourism businesses
is the setting of standards and their use to indicate levels of quality and to serve as an
incentive for improvement. Quality certification and grading schemes, usually voluntary,

Box 1.19. Regulating private lodgings in Japan

The informal renting of accommodation in private houses has been rapidly expanding in
Japan, as in many other countries. This is seen as an opportunity for developing the private
economy, increasing short-term stays, overcoming problems arising from the limited supply
of hotels and meeting the needs of an ongoing growth in demand. However, regulation is
required to ensure that this activity meets public health standards and does not create
issues with local residents. Previously, lodgings in Japan were required to register as
“ryokans” (traditional Japanese inns or guesthouses) under the Hotel Business Law, but
many new private lodgings were operating without permission. Therefore, a Private Lodging
Business Act was introduced in June 2017.
This new law defines a set of rules for operating a private lodging. It provides for
notification and registration systems specifically for operators of private lodging businesses
and for agencies that act as intermediaries between the guests and the operators.
Governments are currently making preparations for enforcement, including the
development of operational rules and ordinance limiting such business at the regional level.
Enforcement of the Act will begin in June 2018.
have been significantly impacted by the advent of customer generated reviews and ratings.
However, various countries have adapted and further expanded their schemes, sometimes
embracing customer evaluation and also linking them to the delivery of advice to SMEs. New
quality service schemes have been introduced in the Czech Republic, Slovakia and
Luxembourg, and France is taking action to modernise its Qualité Tourisme label.
In addition to improving the business environment, there are various examples of
where governments have supported more direct intervention to promote investment and
the performance of tourism businesses through funding, fiscal measures and other forms
of assistance. These include major investment projects as well as support for SMEs. A set
of examples that illustrate the range is provided in Box 1.20.
While the programmes and initiatives referred to above relate principally to investment,
financial measures have also been taken in some countries to benefit businesses by
stimulating tourist spending. In Korea, a Tour Card has been introduced that provides
international visitors with discounts on transport, attractions, shopping, dining and
entertainment, and a Tax Refund Automated System, and Immediate Tax Refund Policy
enables swift tax refunds and the purchase of certain items exclusive of tax. In Latvia, VAT
on accommodation has been reduced to below the generally pertaining level to enhance the
competitiveness of the sector.
As outlined in Chapter 3, Towards Investment and Financing for Sustainable Tourism, in
order to fulfil tourism’s potential as a driver of the transition to a green economy, and
contributor to sustainable and inclusive growth, governments will need to take steps to
further promote and mainstream investment and financing for sustainable tourism
development. Policy options include, taking steps to: promote access to finance for
sustainable tourism investment projects of all sizes; incentivise the transition to low carbon,
climate resilient investments and encourage more responsible business practices in tourism;
build capacity and better coordinate actions across government; and improve data and
analysis on finance and investment in sustainable tourism development.

Box 1.20. Supporting tourism businesses and promoting investment:

Country approaches
In Australia, a partnership between Tourism Australia and Austrade has led to a
programme with various components: a Major Project Facilitation service assists selected
projects with navigating approvals processes as well as providing information and
pursuing solutions to investment barriers; a Senior Investment Specialist works with
states and territories to bring strategically important investment opportunities to fruition
and to promote reinvestment; and the Tourism Demand-Driver Infrastructure programme
funds projects that support the priorities of state and territory governments.
In Austria, the Austrian Bank for Tourism Development provides favourable loans and
encourages new business start-ups. A subsidy programme supports innovative flagship
tourism projects and a bi-annual Tourism Innovation Prize is awarded. Various other
initiatives encourage tourism businesses to invest and the crowdfunding platform
“we4tourism” has been established.
In Italy, the tax credit system “Art Bonus Decree” has been refinanced with
EUR 460 million until 2020 with special regard to the refurbishment and modernisation of
tourism establishments.
In Peru the Turismo Emprende programme provides grants for the improvement and
expansion of established businesses and the creation of new enterprises that include aspects
of conservation, sustainable use and economic development. In addition, a tool called the
“Single Window of Tourism” uses electronic media to streamline the administrative
procedures relating to tourism investment.
Addressing labour supply challenges and improving sector skills

Labour shortages and the availability of skills in the tourism sector have been
identified as a major challenge that is high on the policy agenda of many countries in all
parts of the world (Australia, Austria, Brazil, Canada, Egypt, France, Greece, Latvia, Mexico,
Peru, Philippines, Poland, Slovakia, Slovenia, Sweden, Turkey, and the United Kingdom). For
some countries, insufficient availability of human resources, notably in the hospitality
sector, act as an inhibitor to growth. For others, poor service quality due to unskilled staff
is a particular challenge.
This situation has led to the creation of a range of programmes and specific activities
to address these problems. Sometimes new structures have been established for this
purpose, involving relevant parts of government and industry representatives, such as the
Tourism and Hospitality – Labour and Skills Roundtable in Australia and the Labour Skills
Committee for the Tourism Sector in Peru.
The following actions are being pursued by different countries, designed variously to
influence both employees (existing and potential) and businesses:
● The establishment of new training programmes, which may be subsidised. These may be
aimed at different skill levels and types of business, as in Brazil (Box 1.21).
● Undertaking comprehensive reviews of future employment profiles and training needs
in the sector (Peru).
● Initiatives to encourage employers to provide training. Examples include the provision of
incentives for businesses in Greece to help unqualified employees to gain more skills,
and a policy to boost apprenticeships in the United Kingdom.

Box 1.21. Improving tourism service quality in Brazil

In April 2017 the Ministry of Tourism of Brazil launched a package of measures called
“Brazil + Tourism” to boost the development of tourism in the country. An important
element was a programme to provide practical skills training for young people and adults
to improve the quality of service for tourists, involving different forms of delivery at a basic
and more advanced level, based on national partnerships with the Ministry of Education
and others, including:
● A scheme providing 10 000 opportunities for technical courses in areas such as travel
agency, restaurants, events, tour guiding, lodging, leisure, and bar work. The vacancies
were distributed regionally based on the demands presented by the States.
● A programme for frontline tourism professionals, which offers free vocational courses
based on distance learning for adults and young people over 15 years.
● A training platform aimed at small entrepreneurs, such as street and kiosk vendors,
which provides them with easy access to courses in hospitality and tourism service. Its
content can be accessed by mobile devices – such as smartphones and tablets.
● A higher-level programme, provided in co-operation with the United Kingdom, offers
scholarships for technical and undergraduate students for three months of foreign
language training in hospitality techniques, based in international schools of excellence
(www.pqi.turismo.gov.br/).
● Reviewing and changing the structure of tourism qualifications, certification and the
accreditation of courses, to better address the current situation (Egypt, Latvia, Peru,
Turkey).
● Raising awareness and promoting interest in tourism as a career. In Austria, an initiative
has been launched to increase the attractiveness of jobs in the sector that includes
career guidance in schools for teachers, pupils and parents. A student competition on
tourism has been organised in secondary schools in Slovakia.
● Increasing the capacity of institutions and businesses to deliver training. In Turkey this
has included train-the-trainers programmes and strengthening consultancy support.
One of the reasons for labour shortages in the sector and the difficulty in recruiting
staff is to do with negative perceptions of the sector as a long-term career option, driven
largely by the quality of jobs on offer, in terms of pay and conditions. This needs to be
addressed in some countries. Problems can extend to matters such as affordable housing
and travel to work. The latter issue is recognised in Mexico where the physical plan for the
redevelopment of the resort destination of Los Cabos includes a “Great Employers”
programme that pays attention to workers’ housing needs and their quality of life.
Following the sustainable tourism agenda

Many countries in their policies refer to the need to pursue sustainable development
and to commit to the social, economic and environmental agenda of sustainable tourism.
This requires tourism development and management to take account of current and future
impacts on the global and local environment and local communities as well as the long
term resilience of the sector.
Sometimes the attention paid to sustainable tourism is influenced by wider national
or global policies. In Norway, for example, a new policy on infrastructure has placed a

special emphasis on reducing greenhouse gas emissions from transport, with implications
for tourism. Worldwide, the declaration by the UN of 2017 as the Year of Sustainable
Tourism for Development has raised the profile of these issues, including the relationship
between tourism and the 17 Sustainable Development Goals (SDG), and in particular
SDGs 8, 12, and 14 (Box 3.5). Some countries have made formal commitments during the
International Year, including Mexico, where tourism authorities, private sector representatives,
academia, environmental organisations, and international NGOs have signed a National
Commitment on Sustainable Tourism for Development.
A range of different actions are being pursued to put policy on sustainable tourism
into practice, including:
● Enhancing knowledge and monitoring of sustainability impacts in the sector. Croatia has
launched a new Observatory for this purpose. In Costa Rica a new Social Progress Index
is being used to monitor the well-being of local people in tourist destinations (Box 1.22).
● Maintaining environmental or sustainability certification schemes for tourism businesses.
Growth in participation in schemes has been reported in some countries, such as the
Green Star scheme in Turkey. In Italy an integrated approach has been adopted with a
new hotel classification scheme that includes a special focus on sustainability and
accessibility.
● A growing movement to certify and recognise local destinations for their sustainable
practices. Examples include initiatives in Spain (Box 2.4), Sweden, Colombia and
Germany).
● Supporting the take-up of environmentally friendly technology and operations in
tourism, as in the Philippines and Germany.
● Utilising investment and finance instruments to support capacity building, and to
promote the uptake of green energy and reduce greenhouse emissions. In Mexico, there is
an initiative targeting the hotel sector (Box 3.6); while in Chile, the Foco Destino programme
builds capacity at the local level to boost sustainable tourism development (Box 3.9); and
the German Hotel and Restaurant Association energy and climate mitigation campaign
has been recognised as a good example of an industry-based approach to promote energy
efficiency awareness and sensitivity (Box 3.10).
The above measures may be supported by promotional activity and used to underpin
a destination’s brand. In Slovenia, programmes of sustainability certification are being
pursued for businesses and destinations, initiatives are promoting green investment in
businesses and infrastructure, and the country is being positioned as “green, active and
healthy”.
Ensuring security and contributing to peace

In the last two years the close relationship between tourism, peace and security has
become more visible in global and national tourism policies. This was identified as one of
five key themes for the International Year of Sustainable Tourism for Development, 2017.
A number of countries have taken steps to strengthen security in transport operations,
border controls and main visitor sites and destinations. For example, the United States
took action to strengthen security measures applied to all commercial inbound flights,
including more effective screening measures. It is seeking co-operation with international
partners in this approach, leading to a global raising of standards. At a supra-national level,

Box 1.22. A Social Progress Index for tourist destinations in Costa Rica
The Social Progress Index (SPI) was launched in March 2016, when Costa Rica became the
first country to measure social progress in all its 81 cantons. The SPI allows Costa Rica to
measure the well-being of people in tourist destinations, serving as an indicator to better
promote and establish public-private partnerships, and to foster social progress and
inclusive and sustainable economic growth.
A key aspect of the project is the use of new methodologies to measure the sustainability
of destinations. The knowledge gained from the SPI initiative stimulates the participation
of local communities and has helped to develop a road map to strengthen tourism’s role as
a driver for development and a contributor to the country’s efforts to meet the SDGs.
This project enables the design of tailor-made indicators that can better reflect the
integral and multidimensional nature of tourism and the particularities of each territory,
considering the different types of tourist areas, their degree of development and other
aspects that influence the evolution of the sector and its orientation towards sustainable
development.
This project has been developed through a strong multi-sector collaboration between the
government, the private sector and civil society.
and in line with the Schengen Borders Code, several Schengen Area (the largest free travel
area in the world) members have temporarily reintroduced border control at internal
borders in response to identified threats to public policy or internal security, such as the
secondary movement of irregular migrants, and persistent terrorist threats.
While maintaining and improving security standards is a high priority for the sector,
there is also increasing recognition of tourism’s role as a force for mutual understanding
and peace. A culture of peace through tourism can be fostered through experiencing other
cultures, guest-host interactions, sensitive interpretation of relevant themes and historical
sites, and cross-border interaction. More generally, as an agent for potentially rapid
sustainable development in post conflict areas, tourism can help to establish the
conditions for peace to grow. An example is the linking of peace and tourism in Colombia’s
National Development Plan (Box 1.23).
Box 1.23. Tourism as a force for peace in Colombia

Following the years of conflict in Colombia, The Strategy of Tourism, Peace and
Coexistence has been developed in response to National Development Plan aims to build
an educated, equitable, and peaceful society.
In order to develop tourist destinations in the territories affected by conflict, the Ministry
of Trade, Industry and Tourism has prepared the strategy involving four pilot territories:
Ciudad Perdida (Magdalena), Sierra de la Macarena (Meta), Golfo Urabá – Darién (Chocó,
Antioquia) and Valle de Sibundoy and Mocoa (Putumayo). In these areas, tourism is seen as
i) a tool of transformation towards a culture of peace, ii) contributing to sustainable
development and the empowerment of the communities, and iii) providing a catalyst to
develop other industries. The main objective of this program is to use tourism to rebuild
the social fabric and culture of the territories, developing value chains and improving the
quality of life of the host communities through responsible and sustainable practices.

References
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Paris, http://dx.doi.org/10.1787/a0e8a96f-en.
OECD (2017b), “A review of the policy framework for tourism marketing and promotion”, OECD Tourism
Papers, 2017/01, OECD Publishing, Paris, http://dx.doi.org/10.1787/096d0ace-en.
OECD (2017c), OECD Economic Outlook, Volume 2017 Issue 2: Preliminary version, OECD Publishing, Paris,
http://dx.doi.org/10.1787/eco_outlook-v2017-2-en.
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10.1787/eco_outlook-v2017-1-en.
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empl_outlook-2017-en.
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tour-2016-en.
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mkt.unwto.org/barometer.

© OECD 2018
PART I
Chapter 2
Megatrends shaping the future

of tourism
The future of tourism will be impacted by large-scale social, economic, political,

environmental and technological changes, bringing new and often unseen challenges,
threats and opportunities. These “megatrends” are slow to form, but once they have
taken root, exercise a profound and lasting influence on human activities, processes
and perceptions, including for tourism. Four megatrends are likely to have significant
impacts and relevance for tourism: i) evolving visitor demand; ii) sustainable tourism
growth; iii) enabling technologies; and iv) travel mobility. Exploring the multi-
dimensional implications of these megatrends to 2040 is important to inform policy
and shape the future of tourism.
61
I.2. MEGATRENDS SHAPING THE FUTURE OF TOURISM
T he next 50 years will see the centre of gravity of the world economy shift east and
south. By 2030, developing countries are expected to contribute two-thirds of global growth
and half of global output, and will be the main destinations of world trade. Emerging
economies such as China and India are increasingly important markets for firms in many
industries. A new middle class is fast emerging that will lead to a rise in consumption of
basic consumer products and other product categories. These demand-side factors mean
emerging economies are likely to remain favoured locations for production activities, while
significant shifts towards services will see China and other emerging economies gain large
shares in services trade at the expense of OECD countries in the long-run (OECD, 2016a).
Global tourism has grown significantly in recent decades, benefitting from the rise of
globalisation and technological advances that have led to cheaper airfares, and also make it
easier for people to plan and book their own travel, and then share their experiences with
friends in real time. While that growth is projected to continue, shifting environmental
conditions, technological innovations, and changing demographics are likely to dramatically
transform the face of tourism by 2040.
To understand how tourism might evolve over the coming decades, this chapter
explores those megatrends most likely to impact the sector. Megatrends capture
significant, globally relevant, social, economic, political, environmental and technological
changes over the long-term. They typically have decades-long impacts and, therefore, have
the potential to fundamentally alter and upend industries around the world, including the
tourism sector.
To determine and assess the key megatrends likely to impact for tourism in the years
ahead, this chapter draws on responses to an OECD survey of member and partner countries,
feedback from participants of an OECD workshop on Analysing Megatrends to Better Shape
Future of Tourism (including representatives from government, international organisations,
and industry), outcomes from the 2017 OECD High Level Meeting on Tourism Policies for
Sustainable and Inclusive Growth, and is supported by a review of recent literature and data.
The chapter begins with an overview of megatrend concepts and the growth of the
tourism sector in recent years. It then identifies and analyses key megatrends expected to
drive change in coming decades, with a focus on four that will likely transform tourism:
i) evolving visitor demand; ii) sustainable tourism growth; iii) enabling technologies; and
iv) travel mobility. Each megatrend is examined with respect to its likely impact on the
tourism sector, including key facts and projections for the future.
Finally, the chapter explores the policy implications of these megatrends and outlines
a potential path forward for policy makers to help navigate the opportunities and
challenges that megatrends will present. In particular, it suggests three areas of focus for
policymakers: modernising regulatory and legislative frameworks, cultivating partnerships
with key stakeholders and exploring ways to future-proof policies.
The specific impacts of megatrends for tourism to 2040 remain uncertain. In order to
begin to look forward, however, governments must first have a clear sense of the value of

tourism for their economies and invest accordingly. They need to have a clear strategic
vision with well-articulated objectives, and adopt an integrated approach bringing together
key stakeholders. Developing comprehensive long-term plans that extend beyond the
political cycle – while maintaining the flexibility to quickly identify and respond to
emerging trends and evolving priorities – provides a stable platform for sustainable and
inclusive growth. Growth that not only takes into account current and future economic,
social and environmental impacts, but also addresses the needs of visitors, the industry,
the environment, and host communities.
Overview of global megatrends

Around the world, a number of trends have emerged which have the potential to
transform society. The most significant of these are megatrends, as they are large in scale
and long-term in nature – usually relevant for at least two decades. Consequently,
megatrends usually refer to circumstances that will unfold across the globe in a number of
countries and that can often drive the global economy and society in specific directions.
Megatrends are likely to result in meaningful, long-term changes impacting social,
economic, political, environmental and technological issues. Despite their potential for high
impact, they often unfold slowly and follow relatively stable trajectories. Global megatrends
that are likely to impact countries around the world over the next decade include
demographics, economic interconnectedness, public debt, climate change and urbanisation,
among others. A megatrend like urbanisation, for example, is likely to both unlock social and
economic opportunities, while also straining infrastructure and resources as ever increasing
numbers of people reside in cities. While the exact outcomes of these trends are not certain,
informed predictions can be made which enable governments to start to take early steps to
plan for them.
In order to prepare for megatrends, it is first necessary to fully understand them.
Governments around the world must be proactive and look ahead now to make decisions
that will have long-term implications, as well as to address potential challenges and to
take advantage of opportunities that may result. Therefore, policy makers must consider
the implications of megatrends in areas in which they bear responsibility, including
ensuring economic prosperity, security, social cohesion and environmental sustainability
(KPMG and Mowat Centre, 2013).
To assist with responding to megatrends, the OECD has developed an approach that
focuses on four key categories: people, planet, productivity and polity (Table 2.1).
Table 2.1. OECD Megatrends Framework

Megatrend Description
People Generally refers to changing demographics, as well as trends related to health, labour and social cohesion. In the
context of tourism, this trend is most closely related to evolving visitor demand, which refers to trends such as aging
populations and the growth of the global middle class.
Planet Generally refers to the state of the environment and the impacts of climate change, as well as access to resources such
as food, energy and water. In the context of tourism, this trend is most related to sustainable tourism growth.
Productivity Generally refers to sources of growth, such as technology, innovation and entrepreneurship. In the context of tourism,
the rise of enabling technologies has impacted the way people around the world can travel, such as through platforms
in the sharing economy. Advancements in automation are also likely to transform the sector.
Polity Generally refers to the state of governance, trust and accountability in the public sphere. In the context of tourism,
public decisions will have a role in a number of areas, particularly on travel mobility. For instance, mobility is
significantly impacted by the degree to which national governments support international transport and facilitate travel.

The tourism sector and related industries are parts of the global economy set to be
affected by a variety of megatrends. For instance, the International Air Transport Association
(IATA) predicts that passenger demand over the next 20 years will be impacted by the
emerging middle class in developing countries, diverging demographic outlooks, increasing
liberalisation of aviation markets, and climate change (IATA, 2016). Based on feedback from
member and partner countries, industry and international organisations, this chapter will
explore similar trends, in relation to:
● Evolving visitor demand,
● Sustainable tourism growth,
● Enabling technologies,
● Travel mobility.
Global tourism has experienced steady growth for over six decades, culminating in an
estimated 1.2 billion arrivals in 2016; a figure which is forecast to rise to 1.8 billion by 2030,
with international tourist arrivals in emerging economy destinations projected to grow at
double the rate of that in advanced tourism economies. Global expenditures on travel more
than doubled between 2000 and 2016, rising from USD 495 billion to USD 1.2 trillion and
accounting for 7% of global exports in goods and services (UNWTO, 2017a). In OECD
countries, tourism accounts for, on average, 4.2% of GDP, 6.9% of employment and 21.7% of
service exports.
Overall, projected growth in the tourism sector may be both helped and hindered by
the key megatrends that have been identified. To effectively respond and adapt to these
megatrends, policy makers and industry need to better understand what they are and the
likely impacts they will have on tourism in coming decades.
Megatrends transforming tourism

When considering its likely evolution over the coming decades, it is clear that tourism
will be transformed by large-scale social, economic, political, environmental and
technological changes. While slow to form, once such “megatrends” have taken root, they
exercise a profound and lasting influence on human activities, processes and perceptions.
Megatrends bring new and often unseen challenges, threats and opportunities, the
impacts of which may vary between the economy as a whole, and individual sectors. While we
cannot be certain how these influences will present for tourism, we can be confident that the
structure of the visitor economy will evolve significantly between now and 2040, as: i) income
and education levels increase in emerging economies, the global population continues to age,
and new consumer groups emerge; ii) the global economy continues to shift towards low-
carbon, resource-efficiency; iii) enabling technologies and peer-to-peer/shared usage platforms
continue to create new tourism marketplaces and business models; and iv) the expected
growth in visitor numbers, safety and security concerns, changes in travel facilitation policies,
transport innovations, access infrastructure, and aviation regulations, all affect travel mobility.
It is critical for both governments and industry to explore and understand the multi-
dimensional implications of these megatrends in order to inform policy and shape the
future of tourism. An in-depth discussion of such trends will better enable policy makers
to bring currently unforeseen and emerging issues onto the strategic policy agenda,
develop potential scenarios and policy responses, and better assist public and private
actors to capitalise on opportunities and challenges as they arise.

Evolving visitor demand

Over the next few decades, the structure of the visitor economy will evolve as income
and education levels increase in emerging economies, gender imbalances are addressed, the
global population continues to age, and new consumer groups emerge. Combined, these
factors will impact on the propensity to travel as well as the expectations of travellers.
Although expected to grow at a slower rate than in the past, the world population is forecast
to rise from 7.4 billion in 2015 to 9.7 billion in 2050, driven by growth in developing countries.
Changing demographics will have a major impact on visitor demand in coming years.
In particular, trends such as the continued growth of the global middle class and aging
populations mean that the global population will generally be richer and older in the
decades ahead. Additionally, the rise in prominence of emerging generations will further
upend current considerations that fuel the tourism market. Indeed, Millennials and
Generation Z will become key forces in mobility and their travel behaviour could lead to
significant shifts in the tourism market.
As a result of these trends, not only will the way people travel change, but their needs
and demands are likely to be quite different when compared with tourism today –
prompting new opportunities, and challenges, for the future, and a likely shift away from a
currently dominant western view defining travel, holidays and related practices (Kyyrä and
Rantala, 2016).
Due primarily to increased wealth in emerging economies, the world is experiencing a
significant and rapid expansion of the global middle class. This major increase in middle
class purchasing power and consumption is likely to play a major role in the world
economy in the years ahead. Indeed, it has been estimated that the world is only a few
years away from the majority of the world’s population being considered middle class
(Kharas, 2017). Not only is the middle class increasing, but it is doing so at a rapid rate.
This trend will have broad implications, particularly since this growing demographic
will have more spending power. The combination of this growth alongside advances in
technology means that people in the middle class will have greater access to goods and
services around the world.
Despite this high-paced expansion of the global middle class, challenges will abound
in coming decades. For example, the impact of technology and automation on the labour
force is one issue that could fundamentally alter the number of people in the middle class
(Bremmer, 2016). Indeed, inequality could continue to rise within this large demographic.
Furthermore, growth trends vary across different parts of the world. The fast-growing
middle class predominantly stems from emerging economies. Developed countries will
experience a much slower expansion, and in some western jurisdictions, this has stalled or
declined. As the middle class grows in developing economies, these parts of the world are
going to play an increasingly important role as source markets for global tourism.
Another expanding demographic group is that of the elderly – due to a combination of
increases in life expectancy alongside decreases in fertility rates (ESPAS, 2015). Due to aging
populations, the share of people in the global population over 60 years of age is expected to
nearly double over the next 35 years, with some regions experiencing more significant
growth than others. The next 50 years will see population ageing affecting most OECD
countries, and developing countries, notably in Africa and South Asia, experiencing
considerable population increases. Fertility rates are below replacement rates in many

advanced countries and in some large emerging economies like China and Brazil. Between
2010 and 2060, the OECD’s population is expected to increase by 17%, but the working age
population (age 15-64 years) may fall by 7%, which could lead to a labour shortage that is
unable to meet increased tourism demand. The ageing of the work force may have negative
effects on long-term growth, put pressure on social systems, and introduce major changes
in consumption and investment flows.
As such, the range and volume of goods and services that older people are likely to
consume, including tourism, are also positioned to grow substantially. Infrastructure and
support services will need to be tailored to accommodate both increased demand and
changing visitor needs and preferences. For example, accessibility (both physical access
and information provision) is likely to be an area of particular concern for older tourists.
Emerging generations refer to demographic groups that are on the horizon. Generation Z
(born in the late-1990s to early-2010s) and Millennials (born in the early-1980s to mid-1990s)
will both represent important market opportunities in the tourism sector by 2040.
Both of these demographics have grown up with technology and were raised with the
Internet, which will play a key role in how they access, navigate and interact with different
tourism products and services. Indeed, they are likely to be particularly demanding
compared to previous generations, having grown up with the quick and direct access to
information enabled by digital technology. They are also more likely to travel independently
compared to past generations and be open to temporarily accessing or renting products or
services, such as modes of transport or accommodation, rather than owning them outright.
Different policy and industry pressures will result from changes in these demographic
groups, each of which has very unique travel preferences.
Key facts and projections

At the end of 2016, there were approximately 3.2 billion people considered to be in the
middle classes around the world. Annually, approximately 150 million people are joining
this demographic group, with the majority of those (an estimated 88%) residing in Asia
(Kharas, 2017).
As of 2015, the global middle class was spending USD 35 trillion annually – about one-
third of the total global economy – however, that figure is forecast to nearly double
(USD 29 trillion) by 2030, with only USD 1 trillion of the increase coming from developed
economies (Kharas, 2017). Other projections indicate that, by 2030, this rapidly expanding
middle class will result in increased populations in major cities, particularly in Asia (ESPAS,
2015).
The United Nations (UN) has projected that by 2050, nearly all regions of the world will
have almost a quarter of their population aged 60 or older. This demographic group is
currently growing at a rate of about 3% per year, and is expected to reach 1.4 billion people
in 2030 and 2.1 billion by 2050 (UN, 2017).
The rate of aging is not expected to be equal around the world. For instance, in Europe,
25% of the population is already 60 years of age or older and that figure is expected to
increase to 35% by 2050 (UN, 2017). Other parts of the world are not expected to see such a
dramatic rise, though increases will occur around the world.
Research indicates that tourism is one of the major areas that will benefit from an
aging population that is increasingly more inclined to pursue leisure-oriented experiences

compared to past generations. Indeed, tourism targeted at older markets has been
identified as a particularly high yield and high growth opportunity for the industry. For
instance, individuals 65 years and older in the UK increased spending on overseas travel by
GBP 1.3 billion between 1999 and 2011 while those between the ages of 16 and 34 decreased
spending by GBP 922 million over the same period (Kingman, 2012).
Similarly, a recent study commissioned by the European Commission highlights the
growth potential for accessible tourism in Europe. The study shows that accessible tourism
demand by people with special access needs from the European Union currently generates a
total economic contribution of EUR 394 billion in terms of GDP within the European Union
(3% of total EU27 GDP in 2012). Furthermore, it estimates that if European Union tourism
destinations were improved to achieve almost complete accessibility of buildings, hotels,
restaurants, museums, and various accessible services, by 2020 demand would increase
almost 44% resulting in a potential rise of 39% in economic contribution (Miller, 2014).
One such example is reflected in the rise of multi-generational travel, often involving
families, and fuelled by older tourists with high spending power and significant leisure
time. Approximately one-third of retired individuals have taken trips with people in other
generations (Age Wave and Merrill Lynch, 2016). A unique challenge for destinations posed
by this growing market is the ability to develop and align activities of interest to all
members of the travel party.
Another niche segment that is likely to experience significant growth in the coming
years is that of medical tourism. As the cost of medical insurance and procedures, whether
for health or cosmetic purposes, continue to increase in developed economies, emerging
economies will be become attractive options. As the quality of medical practitioners and
infrastructure improves and the costs remain low, relative to those in source markets,
tourists will be more likely to consider travelling abroad for wellness purposes and/or to
combine a medical procedure with a short break (Alén et al., 2015).
Millennials currently account for approximately 20% of international travel, spending an
estimated USD 203 billion around the world. By 2040, they will range in age from 45 to 60, with
the oldest beginning to approach retirement, and having accumulated additional wealth over
the next 25 years, their proportion of total spending is expected to increase substantially.
Meanwhile, the generation that follows Millennials – Generation Z – will also be a
major force in the tourism market and labour force by 2040, ranging between the ages of
30 and 45. By as early as 2020, this demographic group will make up the largest share of the
global population at 2.6 billion, projected to overtake Millennials who are estimated will
number 2.3 billion (Weinswig, 2016).
Data indicates that Millennials take more trips annually compared to other
generations – at four or more per year. However, trips tend to be shorter in duration
compared to other demographic groups (Globetrender, 2017). Furthermore, they are more
likely to pick travel experiences that they consider to be “authentic” – preferring to head off
the beaten track and “live like a local” (Future Foundation, 2016).
A study by Airbnb found that many Millennials consider travel more important than
other priorities, including buying a home or a car. Additionally, Millennials surveyed in the
United States, United Kingdom and China valued experiences more than ownership
(Airbnb, 2016).When combined with a second nature use of digital technologies, this group
are more likely to create their own travel itineraries than to rely on the advice of travel
agents or participate in package tours.

Implications for tourism sector

All of these demographic factors appear to present significant growth opportunities
for the tourism industry. As the population ages and more people enter the retirement
phase of their lives, they are more likely to spend income and savings on leisure activities
such as travel. Similarly, the overall growth of the middle class will mean more people are
likely to spend on activities such as tourism.
While there is significant potential for tourism growth associated with an expansion
of the global middle class, challenges may arise in the future. As populations in Asia are
observing the most significant middle class growth, they are likely to experience the most
significant increase in demand for pursuing travel and tourism. However, the tourism
industry may need to take into account potential colliding interests, with fast growth in
emerging markets contrasting with slow growth in developed economies (Kharas, 2017).
Furthermore, middle class growth may not be stable, with the current trajectory
susceptible to influence from geopolitical or macroeconomic instability, while automation
and emerging technologies could alter growth patterns and expectations. Governments and
industry will need to continue to monitor these signals, estimate their likely impacts and
adjust long-term strategies and target markets where necessary.
With an ageing global population, seamless transport to and within destinations
(including the challenge presented by the “first” and “last” mile – that travel from a person’s
home to an airport, port or train station, and then on from their point of arrival to their
destination) is a strategic issue that will increasingly need to be addressed. Tourism-related
infrastructure, modes of transport, and information provision, will need to be carefully
designed and operated to cater for a greater number of customers with reduced mobility and
limited communications abilities, in order to help tourists confidently navigate their way
around a destination. In the context of mobility, universal design refers to those transport
systems that accommodate diverse abilities and needs. The adoption of such an approach
can expand potential tourist markets to include people with special needs, whilst also
benefitting travellers without mobility impairment. For example, walkway ramps provide
access for those tourists with limited mobility or wheelchair users, but also convenience for
those with wheeled luggage or parents travelling with a child in a pushchair.
While the purchasing power of older populations is projected to remain high in coming
decades (Dobbs et al., 2016), the current trajectory could alter if work becomes less stable and
the retirement age in countries continues to rise. This could lead to increased variation in
levels of spending power for those approaching retirement in 2040. Flexibility will be critical
in order to effectively respond to their evolving needs and changing expectations.
Various circumstances can impact the travel decisions of older tourists. For instance,
those still in the labour force are more likely to make leisure travel decisions based on
whether they have the money or time to do so, while travel decisions of those who are
retired are more likely to be influenced by their health status (Alén et al., 2015). The
implication being, that for those people that need to continue to work beyond the
traditional age of retirement, simply whether they are healthy enough to travel will
unlikely be the only consideration in any travel decision.
Despite the projected increase in the over 60s market in the years ahead, Millennials,
Generation Z and other emerging generations will comprise the bulk of domestic and
international tourists by 2040. An increasingly large proportion of these will be middle-
class and originating from emerging markets. For example, recent research has found that

Millennials in China – which has experienced significant middle class growth – place a
higher significance on travel than Millennials in other countries (Airbnb, 2016). The
tourism sector will need to adapt to these trends and adopt innovative approaches to
accommodate new demands and specific preferences of these individual groups. New
Zealand’s marketing strategy in response to China’s growing importance as a source
market is one such example (Box 2.1).
Box 2.1. New Zealand marketing to Chinese travellers

New Zealand has already experienced some of the impacts of evolving visitor demand.
China is currently New Zealand’s fastest growing source market and the second largest
overall. New Zealand’s Ministry of Business, Innovation and Employment forecasts that
Chinese travellers will double between 2017 and 2023, expecting growth to 913 000 visitors
who will spend an estimated NZD 4.3 billion per year. These trends prompted New Zealand
to develop efforts that focus on helping the tourism industry respond to the influx of Chinese
travellers.
In 2012, the government initiated a review of the Chinese market. That review included
a recommendation calling for the development of a nation-wide toolkit that was designed
to “accelerate the ability of New Zealand businesses and destinations to raise their service
levels for the Chinese visitor market.” Tourism New Zealand took leadership in
administering the toolkit, which is supported by the government, tourism industry groups
and the private sector. As part of its efforts, Tourism New Zealand develops training and
networking events with various industry segments.
The government’s efforts also involve a shift toward independent travellers and away from
tour groups. In light of this shift, the Ministry of Business, Innovation and Employment
commissioned the China Visitor Insight program in 2015 to help the tourism industry better
understand the needs and preferences of independent travellers from China. The program
provides webinars and online services on topics such as developing products specific to that
market and reaching out via social media. It is focused on marketing toward independent
travellers, as they are believed to be more likely to stay longer and travel further distances.
Workshops developed to support these efforts have had more than 1 000 tourism operator
attendees. Furthermore, the government is taking steps to encourage Chinese travellers to
visit during off-peak periods and new and emerging destinations within New Zealand.
Also as part of its efforts to aid travel for visitors from China, New Zealand’s government
has made it simpler for travellers from the country to visit, such as by extending the
timeframe for multiple-entry visas for Chinese visitors and by providing them with access
to more expedited processing at the border.
Source: New Zealand Ministry of Business, Innovation & Employment.
The predominance of emerging generations and their preferences for unique,

customised, and sustainable travel experiences could lead to a shift away from more
traditional sun, sea and sand, and attraction based tourism. Generation Z, for example,
appears to be highly influenced by social media and recommendations by peers when
making travel decisions. They are interested in taking risks on vacations and having
unique experiences, as well as trips focused on relaxation (Globetrender, 2017). While the
appetite for risk-taking may decline as Generation Z approaches retirement, it is likely that
this preference will be taken up by following generations.

In order to capitalise on these changing trends, policy and industry decision makers
will need to consider how to more effectively develop and connect travellers with more
remote destinations, where appropriate, to provide diverse and distinct experiences
outside of traditional tourism destinations, and support the socio-cultural and economic
development of local communities.
However, the purchasing power of these groups in 2040 may impact their willingness
and/or ability to travel, as they have faced economic circumstances that have generally
made it more difficult for them to accumulate wealth as easily as for preceding generations
(Dobbs et al., 2016). Indeed, Millennials were hit hard by the global recession, which
impacted career advancement, and now face a changing workforce that is often precarious
and increasingly automated, as well as greater inequality in general. These changing
circumstances may also go some way to explaining the trend towards shorter trips and
increasing popularity of cheaper travel options such as low cost airlines, home-sharing and
ride-sharing platforms, hostels etc. These issues must all be considered in assessing the
travel preferences of emerging generations in the decades ahead.
Sustainable tourism growth

Tourism is widely recognised as a human activity that is dependent on natural
resources, while at the same time contributing to the depletion of these same resources. As
for many sectors, tourism is a relevant factor in the consumption of energy and generation
of greenhouse gas emissions. It also contributes to fresh water and land use, environmental
degradation, and unsustainable food consumption. The sector also has various impacts on
global biodiversity. Tourism’s interrelationship with these resources can be direct or indirect,
and even though all tourism activities are ultimately local, they add up to phenomena of
global significance.
At the same time, however, tourism can also raise awareness of cultural and
environmental values, help finance the protection and management of protected areas,
and increase their economic value and importance. When built upon broad stakeholder
engagement and sustainable development principles, tourism can contribute to more
inclusive growth through the provision of employment and economic development
opportunities in both urban and rural areas, and promote social integration.
Tourism can play a key role in driving the transition to a low-carbon and resource
efficient economy. Due to its cross-cutting nature and close connections to numerous
sectors, even small improvements will have important impacts. In recognition of tourism’s
potential to advance the universal 2030 Agenda for Sustainable Development – by
mainstreaming sustainable consumption and production patterns that are resource
efficient and result in enhanced economic, social and environmental outcomes – 2017 was
declared the UN International Year of Sustainable Tourism for Development.

Estimates of tourism related emissions include all domestic and international leisure and
business travel, with a focus on transportation to and from the destination, accommodation,
and activities at destinations. Taken together, the tourism sector is estimated to contribute
approximately 5% of global GHG emissions (UNWTO, 2017b). A more complete analysis
would also include food and beverages, infrastructure construction and maintenance, as
well as tourist retail and services.

Transport is responsible for around three quarters of the tourism total (aviation
accounting for 40% and cars for around 32%), followed by accommodation (over 20%), and
cruise ships. International aviation has increased its emissions by 83% since 1990, generating
an estimated 781 million tonnes of carbon in 2015 (ATAG, 2016). In a business as usual scenario,
it is estimated that the sector will generate three times this amount by 2035 (CREST, 2016).
Tourism is both dependent on fresh water resources and an important factor in local
fresh water use. Tourists need and consume water when showering or using the toilet, when
participating in activities such as skiing (snowmaking), and when using spas, saunas,
wellness areas or swimming pools. Fresh water is also needed to maintain hotel gardens and
golf courses, and is embodied in tourism infrastructure development (including
accommodation), and food and fuel production. Changes in the availability or quality of
water resources can have negative impacts on tourism (OECD, 2015).
Tourism growth and the trend towards higher-standard accommodation and more
water-intense activities, and declining water resources, will lead to increased pressure on
water resources in many destinations. As a consequence, tourism development may
become less feasible or impossible due to declining water quality and the costs associated
with providing fresh water. Impacts will ultimately depend on several factors, including
the relative scarcity of fresh water in existing and potential tourism destinations,
competition with other economic sectors such as agriculture or biofuels, and the structure
of the tourist industry (e.g. small guesthouses vs. large resort hotels), and the level of water
use per guest night. Regional conflicts over water use have already been reported (ITP,
2013), and are projected to increase in the future due to increasing demand and declining
supply.
Food production and waste minimisation have a wide range of sustainability implications.
For example, UNWTO-UNEP (2008), estimates that 25 billion tourist days were spent in 2005
alone. At an average of three meals per tourist per day, this represents roughly 200 million
meals per day. With the number of international arrivals increasing by over 50% to 2016, this
figure increases towards 300 million per day. Hotels, consequently have considerable power
over food production and waste minimisation and can directly influence sustainable food
production through regional or organic food purchasing policies. For example, the initiative
by the Scandic hotel chain to only purchase organic and fairly traded coffee affects 20 million
cups of coffee served per year (Gössling et al., 2011).
While well-planned tourism development has the ability to contribute to the economic
and socio-cultural well-being of host communities, rapid and unplanned tourism growth
can equally result in negative impacts, such as overcrowding, which can impact upon both
the communities and the environment upon which it depends. For example, some studies
have correlated tourism growth with the deterioration of traditional culture, as well as
increased gambling, drug trafficking and even prostitution. There is also some evidence to
suggest that increased tourism can result in higher property taxes and higher cost of living
in host communities, which may become unaffordable for local residents (Kim et al., 2013).
The exponential growth in the tourism sharing economy is a case in point. Peer to peer
platforms have the potential to drive economic growth and job creation, and generate added
value by encouraging tourists to disperse to less well-known destinations. However, it may
also generate negative externalities. Accommodation sharing services in particular may
impact neighbours and local residents, due to noise and other disturbances, and by
contributing to pressure on the local housing market. In a worst-case scenario, poorly

managed growth of these services may also have a detrimental impact on the historical
fabric of destinations and reduce the appeal of areas as places to live and visit (OECD, 2016b).
The OECD report on Green Innovation in Tourism (OECD, 2013) highlighted an industry
perception that customer reluctance to pay a premium for more environmentally sustainable
products or services. However, customer perceptions may be changing. Results from a 2015
study showed that 66% of global consumers were willing to pay more for sustainable brands,
up from 55% in 2014, while for Millennials, the figure was significantly higher at 73%, up from
only 50% (Nielsen, 2015). However, while a growing number of travellers express a
willingness to pay a higher price for sustainability, in some markets, there is still a large
proportion of those who are not (López-Sánchez and Pulido-Fernández, 2016). A key factor
influencing purchasing decisions is brand trust, which is why third-party certification
programs have become so common in the field of sustainable tourism.
Each year, the World Travel and Tourism Council (WTTC) recognises tourism
destinations and enterprises for best practices in sustainability relating to the community,
environment, innovation, and people. In its most recent report, there were a number of key
trends identified that provide insight into the future of sustainable tourism (WTTC, 2016):
● There has been a notable increase in quality and quantity of applications from urban
destinations, highlighting the growth in urban tourism as well as an increased use of
tourism for economic development by municipal governments.
● Conservation and preservation of biodiversity have always remained a constant priority
over time. However, as a result of a global push for climate action, climate change and
GHG emissions are increasingly seen as critical elements of any sustainability initiative.
● Social enterprises are becoming more engaged in the tourism sector, due in part to the
role of social media and mobile technology in connecting people quickly and easily.
● The “people” aspect has become more prominent in the tourism sector, resulting in
greater promotion of employment, training and workforce participation as key drivers
for industry development.
● There is a greater focus on measurement and evaluation of sustainability initiatives,
which has in turn increased the overall standards in this area.
Implications for tourism sector

The consequences of climate change will be felt across the travel and tourism sector
over the coming decades. Existing tourism offers in many countries will be challenged as
the physical environment is altered and extreme weather events become common. For
instance, much of international tourism occurs in coastal regions, which are under
significant threat of storms, flooding and tidal surges. Southern destinations are likely to
face extreme heatwaves in the summer seasons, and northern destinations that rely on
outdoor winter activities will face shorter periods of snowfall, leading to potentially larger
seasonal variations for many countries. For both government and industry, this will require
a serious rethinking of how travel activities are offered and how tourism is managed over
the long-term (Box 2.2).
It will become increasingly important for governments and industry to work together
in a pro-active approach to ensure the sustainable development and management of
attractions for the benefit and enjoyment of local communities and tourists in both the
short and long term.

Box 2.2. Sustainable Destination Development Programme in Sweden

In 2012, over 40 regional and local organisations applied to the Swedish Agency for
Economic and Regional Growth (Tillväxtverket) to take part in a four year initiative to
strengthen and develop sustainable tourism destinations in Sweden. The five regions of
Bohuslän, Kiruna, Stockholm Archipelago, Vimmerby and Åre were selected. Each region has
its own unique character and development needs, and while sharing common objectives,
each had its own specific goals as well. The total budget for the project was EUR 6.4 million,
of which around EUR 1 million was allocated to each destination. Destinations initiated
activities to prolong the tourist season, improve quality in hosting, develop new and more
sustainable products and services, enhance accessibility, and generally improve the
destination’s quality and competitiveness.
The project highlighted the benefits of a national initiative, bringing credibility and
status, as well as driving practical actions. By sharing knowledge, clear communication
and targeted activities, each location increased its number of international visitors and
developed programmes of sustainable development that were sensitive to both social and
environmental factors. The programme is recognised as contributing to UN Sustainable
Development Goal 12.
A new programme was launched in 2016 and is due to run until 2019, with seven projects
across Sweden focused on cultural and nature tourism.
With the number of international arrivals estimated to reach 1.8 billion by 2030, and
domestic arrivals potentially four times that figure, the transition to a low-carbon and
resource efficient economy presents a range of opportunities and challenges for tourism
policy makers. These include the need to better understand the current and potential
impacts of different forms of tourism on the environment and natural resources, and
providing the right incentives throughout the value chain to promote sustainability, and
demonstrate that environmentally-friendly policies can also be business friendly.
To achieve greater resource efficiencies, green investment structures, and cross-sectoral
synergies there is a need to consider various sustainability drivers (UNEP, 2011). These
include, for i) energy – increased costs and carbon surcharges; government incentives; eco-
labels; as well as regulations/legislation on energy efficiency; ii) water – price structures
reflecting water scarcity and responsible water management; and iii) biodiversity – regulation
regarding sensitive ecosystems, as well as national policies attracting revenue through
tourism for protecting critical biological habitats. Under such a green investment scenario,
tourism could make a larger contribution to GDP growth, while significantly reducing water
consumption, energy use and CO2 emissions, compared to a business-as-usual scenario.
Within this context, and due to its cross-cutting and fragmented nature, tourism policy
needs to be considered within its broader policy context. Support and leadership from policy
makers at the highest level can help ensure that the impacts on tourism of related
policy areas and initiatives are also considered. The linkages between different policy areas
together create a policy mix that shapes how tourism develops over the short, medium and
long term.
An integrated governmental approach, with input and support from industry and civil
society, is therefore necessary to address the multi-faceted challenges faced by the tourism
industry. These include protecting, managing and enhancing natural and cultural resources,
and developing the infrastructure and skills needed to meet expected future demand. Such

an approach will help to secure the longevity of tourism as an economic and social force by
focusing on environmental sustainability, inclusiveness, diversification, innovation and
strategic improvements to productivity; rather than simply reacting or seeking to meet
short-term objectives to stabilise, adjust or shift towards new market opportunities.
Enabling technologies
New technologies continue to reshape markets and sectors around the world, and the
pace and scale of disruption appears to be hastening. From the sharing economy to the
Internet of Things, to autonomous vehicles and artificial intelligence, and blockchain
technology to big data analytics, a range of new and emerging innovations are promising
to unlock more opportunities for people around world.
Together, these trends could make travel more affordable, efficient and accessible to
many people. The reconceptualisation of intermediaries likely means that long-standing
models of tourism in areas like accommodation or travel agencies will continue to be
radically reshaped, with more travellers connecting directly through a technological
platform with a service provider, rather than dealing with a hotel, a booking agent or
professional travel agent.
Policy makers will need to consider how to provide a supportive environment that
promotes innovation as new technologies emerge, with the potential benefit of more easily
connecting tourists with a broader array of business partners and destinations. At the
same time, however, new technologies will also have complex and less well-understood
implications on workers employed in the tourism industry. For example, the advent of new
technologies that can automate human tasks through machine learning and artificial
intelligence could completely change how people work, what they do, and more generally
how many jobs are available. Policy makers must also consider how to manage these rapid
changes to mitigate potential negative consequences.
In recent decades, technological advancements have made travel more affordable,
accessible and simpler for many people, and in the future, technology has the potential to
completely changing what is thought of as tourism (e.g. integrated ticketing, mobile
payment systems). For example, as virtual reality technology continues to improve, it is
conceivable that virtual tourism could either complement or supplant physical journeys
for some travellers. Conversely, as people live increasingly digital and connected lives, the
opportunities to unplug and have analogue, natural experiences while on trips may well
become a preferred alternative to purely digital experiences.
How people’s behaviours will change in light of these types of paradigm-shifting
technologies is not yet clear, but technology poses both broad opportunities and challenges
for policy makers who will want to ensure that their national and local economies are best
positioned to thrive in the world of tourism in 2040.

Digital platforms are often used to inform travel decisions and their impact is likely to
grow in coming decades. Indeed, online platforms are used to advertise and book vacations
online, making it easier and simpler for travellers to plan. In particular, social media is
often used to influence the decisions of emerging generations, such as Millennials or
Generation Z. While the increasing pervasiveness of social media presents opportunities
for those marketing destinations, it can also present a threat for vulnerable destinations

(communities, cultural or environmental attractions) unprepared or unsuited to rapid

growth in tourist traffic due to sudden popularity on one of more platforms. However, as
environmental conservation efforts need to become more agile, technology can also be a
solution. Despite potential challenges, digitalisation is expected to greatly benefit the
tourism sector, creating an estimated USD 305 billion in value between 2015 and 2016.
Over the same time period, digitalisation in the aviation, travel and tourism industries
is estimated to migrate USD 100 billion in value from traditional players to new
competitors, and generate USD 700 billion in value for customers and broader society (WEF,
2017). However, while use of digital platforms can bring convenience to consumers and
increase capacity to accommodate travellers, there are also challenges that come with
disrupting the traditional system.
The sharing economy in particular has grown quickly in the past five years to capture
a sizable portion of economic activity. The growth has been most notable in transportation
and accommodation, but continues to extend to many other sectors. The top five sharing
economy sectors could see global revenues jump from USD 15 billion in 2014 to
USD 335 billion by 2025 (PwC, 2015). Home-sharing platforms such as Airbnb, HomeAway
and Couchsurfing are now significant competitors to the hotel industry – Airbnb is valued
at an estimated USD 30 billion, which compares favourably to the Hilton chain at
USD 19 billion and Marriott at USD 35 billion. Airbnb bookings continue to grow at a rapid
pace, from 4 million nights in 2011 to 40 million in 2014 and a projected 80 million in 2017
(Duryee, 2012; Somerville, 2015). Only one in 10 travellers from the United States used
private accommodation in 2011, a figure which jumped to one in three travellers by 2015
(Quinby, 2016). However, concerns have been raised about the quality of home-sharing
accommodations compared to hotels. Some jurisdictions have made progress on
regulating home-sharing but many more are still determining how best to respond to its
emergence and growth.
The same is true for ride-sourcing, which has also encountered similar challenges
despite its significant growth in recent years. The continued, rapid growth of ride-sourcing
firms such as Uber, Lyft and BlaBlaCar is also providing more options for people when
travelling that can be cheaper and more efficient. Employment by ride-sharing firms in the
United States increased by 69% between 2010 and 2014, and then by another 63% in 2015
alone (Hathaway and Muro, 2017). Ride-sourcing firms are experimenting with new
offerings such as rides with drivers who are proficient in English or cross-border trips to
further gain a foothold with tourists (Sawers, 2016).
Future growth in the dining and travel experience realm can be expected in the
sharing economy as well, as consumers become more comfortable and familiar with the
opportunity to eat in someone’s home when on a trip (through platforms such as
BonAppetour and VizEat), or take advantage of a tour or personalised experience through
platforms like Vayable, ToursbyLocals and recently through Airbnb’s Trips feature, which
offers tours and unique experiences hosted by locals.
Rapid advances in automation through robotics, machine learning and artificial
intelligence are poised to disrupt labour markets around the world in the next two decades,
potentially eliminating up to 69% of existing jobs in India, 47% in the United States and 30%
in the United Kingdom (Frey and Osborne, 2013; Kim, 2016). However, these disruptions in
sectors ranging from manufacturing to retail to administration are also likely to deliver
more efficient, affordable goods and services in a range of areas.

In 2015, the world’s first hotel staffed by robots opened in Japan and the firm behind
the idea has plans to open 100 more locations by 2021 (Kikuchi, 2017). Many jobs in the
tourism sector, ranging from travel agents to hotel staff, are likely to be impacted by the
increased penetration of automation into the economy. At the same time, real-time
translation software is making it more convenient for tourists to travel to areas in which
they do not speak the language. Indeed, translation apps are now able to translate signage
and are expected to go beyond that capability into translating verbal statements in coming
years (NITB, 2013). This can add to the options made available to tourists, but also have the
potential to impact the duties of tour guides.
Additionally, companies in the tourism sector are using big data and predictive
analytics to increase knowledge of consumer behaviour and customise travel experiences
accordingly. Indeed, the industry is already developing virtual assistants powered by
artificial intelligence to help travellers book trips more easily (Boztas, 2017; Levere, 2016).
Big data is also being used to make services more efficient and targeted by using such data
to track purchasing behaviour and predict service demand (Song and Liu, 2017). For
instance, data generated through social media sites can impact the way decisions are
made in the sector (Miah et al., 2017). However, with the increased use of big data come
concerns over privacy, inaccuracy and misuse of such information.
Autonomous vehicles (AVs) are already successfully being piloted on the roads in a
number of jurisdictions and it is anticipated that the application of this technology on a
broader scale could happen by 2025 or sooner (Keating, 2017; Assis, 2017). Sales of AVs
could reach more than 20 million by 2035 (IHS Markit, 2016). Widespread adoption of AVs
would have major implications for travel mobility and tourism both within major urban
centres as well as for inter-city or regional travel.
Blockchain technology, known predominantly for underpinning cryptocurrencies such
as Bitcoin, has a broad range of potential applications in many sectors. For example, it
permits people to securely register their ownership over data and also to engage in
transactions more efficiently and with higher degrees of trust. Blockchain applications in
tourism could include better forms of identity management and more secure, efficient
communication for travellers with the entire spectrum of travel service providers, from
airlines to loyalty reward programs (Gjerding, 2017; Aitken, 2016).
Furthermore, it could also reduce costs associated with exchange rates among foreign
currencies when travelling abroad. Indeed, the use of cryptocurrency such as Bitcoin, would
eliminate any fees or the need to exchange currencies at all when travelling abroad, potentially
increasing the appeal of international travel. This is particularly the case for emerging
economies, as cryptocurrencies could be an effective hedge against inflated currencies and
therefore offer greater certainty and security. Blockchain technology also has the potential to
change and simplify loyalty programs for frequent travellers (Kowalewski et al., 2017).
At present, virtual reality (VR) technology is used primarily in video games, however,
tourism is a sector that could obviously be impacted if people were readily able to
experience new and exotic locations without leaving the comfort of their own homes. In
the tourism sector, balancing the potential and promotion of VR destination experiences
against the interests of those along the traditional tourism value chain, will likely become
a key decision point for many marketing entities.
In Canada, Destination BC has developed an immersive VR tour of the Great Bear
Rainforest designed primarily for travel trade and media partners. Similarly, Tourism

Australia has captured high-resolution footage of their most popular tourist destinations
for use in immersive VR experiences (Box 2.3). Some hotel chains have also experimented
with VR in-room experiences that make it possible to experience destinations without ever
stepping foot outside.
Box 2.3. Experience Australia in 360°

In 2016, Tourism Australia produced a number of virtual reality videos that allow online
users to experience some of the country’s most famous sites such as the 12 Apostles,
Sydney Harbour, Whitehaven Beach, and the Gold Coast. A total of 18 clips were developed
as part of the latest iteration of its global “There’s Nothing like Australia” campaign which
focuses on aquatic and coastal experiences. The 360-degree mobile technology is
immersive, allowing viewers to feel as though they are experiencing the product when
viewing videos of helicopter flights, kayaking, snorkelling or sailing. The footage can be
viewed through VR headsets as well as online and via mobile phone apps.
The immersive VR experience aims to entice prospective travellers to visit and experience
the unique aquatic and coastal tourism attractions in Australia, targeting key markets such
as the United States, United Kingdom, China, India, Japan, South Korea, Singapore,
Indonesia, Malaysia and Hong Kong. The global marketing push proved successful with
more than 10 million views in the few months after its launch and a 64% increase in
engagement on the Australia.com website. Emerging VR technologies are providing new
ways for consumers to engage with destinations, providing a level of immersion and
engagement unmatched by other media platforms, through a more compelling mode of
storytelling.
Tourism Australia partnered with TNS and Google Think Board to understand the
potential of VR as a marketing and promotional tool for tourism businesses and
destination marketing organisations. Research findings highlighted that VR experiences
bring a destination to life and can help to make travellers consider destinations they
otherwise would not have. According to their estimates, 25% of travellers plan to use VR in
the future to assist with choosing a holiday destination (22% in the United States, 25% in
the United Kingdom, 30% in Australia). This technology is reported to allow travellers to get
a feel of the destination, to preview the experiences on offer, and to assist with managing
expectations. Consumers appeared to be most interested in experiencing VR content
relating to nature and wildlife, and aquatic and coastal offerings (www.australia.com/360).
Virtual tourism experiences may increasingly provide an opportunity for alternative

on-site experiences at locations considered too environmentally or culturally sensitive to
allow physical visitor access. For example, climbing on the Uluru monolith, within the
UNESCO World Heritage listed Uluru-Kata Tjuta National Park, will cease from 26 October
2019 to reflect its significance as a sacred site to the Anangu, the park’s traditional
Aboriginal owners. VR might provide future visitors with the option to enhance their
experience at Uluru, while contributing to the local economy. However, any VR activities
would not be focused on the Uluru climb area, but on other areas of the park that promote
the parks cultural and natural values.
Augmented reality (AR) could end up being equally transformative for the sector, as
travellers and service providers adapt to technologies such as holograms or mobile apps
that add virtual elements to real-life situations. Easier access to navigation information,

translations, and even virtual interactions with historical figures are possible ways of
enhancing visitor experiences using AR technology. For example, the International Centre
for Cave Art, near Montignac in south-west France, is a vast site cut into the landscape that
houses a full-scale replica of the Lascaux cave system augmented with the latest digital
technologies to help protect fragile archaeological finds.
Implications for the tourism sector

The inherent unpredictability of how enabling technologies that are already in
existence will continue to evolve – as well as the emergence of new and yet unknown
technologies – makes specific actions today by policy makers a challenge. The rapid rate of
technological change in society, which is likely to only accelerate in scale and speed,
further exacerbates the difficulty of adjustments to existing approaches and novel policy
responses. Technological innovations could, either radically or incrementally, alter the
tourism experience, how people work within the sector, and raise questions about how to
best manage these transitions.
However, there do appear to be shared key characteristics of new and anticipated
emerging technologies that can help guide policy responses. Digital technologies will help
connect people with more information, people and experiences, more quickly than ever
before. They will likely make marketplaces and operations across a range of endeavours
more efficient. These changes are likely to be disruptive to a variety of sectors, including
tourism, and in the short-term may dislocate many workers from their existing work
patterns. Increasing fluency and the ability to make data-driven decisions in an
environment with vast amounts of information will become increasingly important.
New technologies may offer the opportunity to provide highly customised products
and experiences to travellers, as tourists increasingly have more transparent and
comparable information at their fingertips when making decisions about where to stay,
how to get to a destination and where to eat. However, the rise of digital platforms and
aggregators in travel and tourism may also squeeze the profit margins of existing tourism
suppliers across sectors ranging from transportation to accommodation to dining.
Policy makers will also need to consider how and whether to pursue more digital
strategies to market and deliver tourism services in a global environment where that
approach is likely to be prevalent. For example, Austria launched a digitalisation strategy
for Austrian tourism in September 2017 (Box 1.13). Some destinations, however, will likely
opt to differentiate their travel experience by offering more analogue and offline options
that are not overwhelmed with visitors at the same sites and locations that are
consistently ranked highly online.
A priority area for policy makers will be the continued emphasis on future-proofing and
anticipating how enabling technologies will unlock new opportunities and pose challenges
to the tourism sector should be a priority focus. Regular review processes of how particular
sectors are vulnerable to disruption and potentially can be re-oriented to stay ahead of the
disruption curve should be held, with perspectives of all key stakeholders, including
innovators.
A second key priority should be to strengthen regulatory and compliance frameworks
to make them more permissive of innovation and responsive to rapid technological
changes. These approaches need to be considered within the context of overall economic
and social policy frameworks which necessarily overlap and touch on the operations of

both national, sub-national and local governments and many different sectoral fields,
ranging from housing to transportation to security issues.
A third key issue for consideration in both the tourism sector and more broadly, is how
to best balance concerns about privacy and security in an increasingly connected, data-rich
world. For travellers, the benefits of sharing more data could include faster transit and
security clearances, but there will likely be a growing demand for the development of
appropriate safeguards to ensure data is not being used for unauthorised purposes.
Technologies have continually and progressively reshaped tourism value chains, and
will continue to do so. The ongoing evolution of business models within the sector will offer
new opportunities for many entrepreneurs while disrupting others. A greater focus on
communication, networking and partnership management skills for businesses in the space
will be critical. Therefore, working closely with government bodies to develop strategies
should be a top priority to seize on the potential to offer better services for travellers
(Box 2.4).
Box 2.4. Smart Destinations Project in Spain

A Smart Destination is an innovative tourist destination using state-of-the-art
technology for the sustainable development of a tourist area, accessible to everyone, that
facilitates the visitors’ interaction with and integration into their surroundings, increases
the quality of the experience at the destination while also improving the quality of life of
its residents.
This initiative has been developed and promoted by the Spanish Secretariat of State for
Tourism, through SEGITTUR (a state owned company responsible for promoting research
and development for innovation and new technologies in the Spanish tourism industry), to
improve the position of Spain as a world tourism destination. The methodology developed
fosters innovation, sustainability and competitiveness at a local level through the
development and deployment of ICT with the aim of creating differentiated and highly
competitive services.
Destinations seeking to become SDs must implement a strategy aimed at increasing
competitiveness through more sustainable use of their natural and cultural attractions,
the creation of additional innovative resources, and improvements in the efficiency of
their production and distribution processes. Issues considered as part of the Smart
Destinations initiative include, ensuring sustainable development, managing the carrying
capacity of destinations, contributing to the seasonal and territorial distribution of
tourism flows, increasing profitability, ensuring that residents share in the wealth
generated by the tourist activity, and increasing tourist satisfaction.
On the way to becoming a Smart Destination, stakeholders are confronted with vast
challenges and possibilities which need to be carefully considered, prioritised and
selected. Geo-referenced data, Big Data, the Internet of Things, Open Data and many other
data-related sources and concepts represent fundamental elements for the transition
towards more intelligent, sustainable and competitive tourist destinations that meet the
needs of all stakeholders involved (www.segittur.es/en/inicio/index.html).
Travel mobility
Transport is an essential component of the tourism system and plays a vital role in
moving tourists efficiently from their place of residence to their final destination and on to

various attractions. Transport connects the markets in tourism generating regions to

destinations and facilitates the internal movement of visitors between components of the
tourist experience (e.g. accommodation, attractions, commercial services, etc.), and can be
a major element of the attraction or an experience in their own right. The location,
capacity, efficiency and connectivity of transport can play a significant role in how a
destination physically develops, influencing the mobility of visitors and the connectivity of
tourist experiences within destinations.
The synergies between transport and tourism policy are significant and clear, and
governments have an important role to play in leveraging the linkages between these
policy areas. While transport policy aims to achieve strong connectivity and seamless
transport that meets both the short- and long-term needs of the economy and the
community, these same policies affect tourists as they move around a destination.
Providing integrated, multi-modal transport systems (including land, sea and air transport)
between cities or across borders, requires coordinated responses to technical, institutional
and financial issues from a variety of stakeholders (OECD, 2016c).
Transport has always been a key enabler of international tourism, bringing consumers
to commercial services and providers to global markets. However, inflows of tourists can
put significant pressure on transport infrastructure and related services such as roads,
buses, railways, maritime transport and – perhaps most notably – aviation.
From an international tourism perspective, the dominant role that air transport plays
in delivering tourists to destinations is clear. In 2015, for example, the UNWTO estimates
that air transport accounted for just over half (54%) of all international arrivals, while travel
by road accounted for 39%, water 5%, and rail 2% (UNWTO, 2016a). While air and road are
by far the primary choices of transport for international tourists, rail and water, and by
extension, cruise terminals and international train stations, have an important role to play
in distributing visitors to and around their destination of choice.
The rapid growth in tourism and air transport, in recent decades, is in response to two
major factors i) higher incomes and an emerging middle class in emerging economies, which
encourage greater consumption expenditure, including travel (by all modes) and; ii) air travel
has become better value for money, as a result of improved aerospace technology and market
liberalisation. Aviation liberalisation has encouraged competition, fostered the creation of
new routes and enabled new airline business models to emerge, such as charter and low-cost
carriers, which injected a greater level of competition in the airline industry (ICAO, 2013).
The projected growth of tourism over the next 20-25 years will provide enormous
economic benefits and job opportunities in destinations all over the world. However, the
growth and success of the sector relies upon the ability of people to travel safely and freely
cross borders (WEF, 2016). Travel mobility will be affected by a range of internal and
external factors presenting opportunities and challenges for industry and policy makers.
All of which must be considered in tourism policies and strategies to ensure sustainable
growth of the sector.
Travel facilitation measures in particular, including customs and immigration policies
and visa requirements for visitor entry, are key components in ensuring ease of mobility
between destinations. When these processes are made time-consuming, expensive or
bureaucratic, they can act as disincentives for travel to that destination. Indeed, a
destination can be made more desirable when such processes are instead streamlined and
efficient.

Border measures and overall safety and security efforts are, of course, shaped by larger
external factors such as geopolitical instability and increased risk of terrorist attacks. The
world has entered a time of significant uncertainty, as protectionist sentiments rise and
many nations retreat inwards. While travel mobility is inextricably linked to these
geopolitical changes, they are inherently unpredictable and difficult to prepare for in any
sector.

The number of international tourist arrivals is projected to grow significantly in
coming decades. Air passenger traffic in particular is expected to nearly double between
now and 2035, expanding from 3.8 billion to 7.2 billion passengers (IATA, 2016). The
International Transport Forum (ITF), forecasts that the number of passenger-kilometres
will double to 9 trillion by 2030, pushed by the large growth in the Asia-Pacific region,
which will represent 40% of world passenger traffic, up from 30% in 2015 (OECD/ITF, 2017).
The ITF has also forecast strong growth in global road and rail passenger travel to 2050,
with estimates ranging from 120% to 230%, depending on future fuel prices and urban
transport policies. This growth is driven by non-OECD countries, where passenger volumes
are projected to grow between 240% and 450% (OECD/ITF, 2015). Similarly, the cruise
industry has enjoyed strong growth over a period of 30 years, driven initially by demand
from North America and more recently by growing demand from Europe and the rest of the
world. Cruise Lines International (CLIA), estimates that over the ten years 2004/2014
demand for cruising worldwide increased from 13.1 million to 22 million passengers
(+68%) with 3.4% growth achieved in 2014. In 2018 global passengers are expected to exceed
25 million before reaching 30 million in 2024 (CLIA, 2015).
The strong growth in world air passenger traffic experienced in recent decades is
expected to slow between 2030 and 2050, for two main reasons. Firstly, slower growth after
2030 is driven by projected GDP and population growth, which slow or even decrease (e.g.
the expected population peak in China is 2030). Secondly, the network gradually reaches
saturation, with fewer and fewer potential new links. This is especially true of very long
distance routes, for which the low-cost carrier business model cannot be readily adapted,
and leaving regional networks with more capacity to grow (OECD/ITF, 2017).
In Asia, for example, this means that passenger numbers at mature, long-haul airports
are expected to grow at a slower rate than at secondary and often regional airports.
Regional airports, many of which are still largely dependent on domestic traffic, only
recently started to accept international flights. Their growth has been facilitated by the
commencement of regional flights, in particular from low-cost carriers. For instance, the
number of international flights at Chongqing airport increased five-fold between 2010 and
2015, while passenger demand is expected to increase at more than 15% in the region over
the next two decades. This contrasts with the Beijing or Shanghai regions, which have
experienced less than 5% growth in international passenger numbers in recent years, and
a figure that is not expected to rise in the foreseeable future (OECD/ITF, 2017).
For shorter routes, growth in high-speed rail, with established networks in Europe and
a quickly expanding network in China, may present increasing competition for the aviation
sector, particularly in light of it being perceived as a convenient and more environmentally
friendly alternative. For example, in the European Union, rail travel significantly increased
in the decades preceding the economic crisis, largely thanks to the building of a large

high-speed rail network. For some city pairs (e.g. Paris and London and Paris and Brussels),
high-speed rail has now largely or completely replaced aviation as the mode of choice for
most passengers (OECD/ITF, 2017).
While old and new destinations alike stand to benefit from the upward trend in
international passenger aviation, and the expansion of the global aviation industry more
broadly, the sheer growth in movement will also pose significant challenges.
For example, as the number of international arrivals grows, there will be greater
demand pressures on the tourism sector to adapt in the face of climate change. Although
tourism is currently responsible for around only 5% of global GHG emissions, the aviation
industry is responsible for the large majority of that figure, generating 781 million tonnes
of carbon in 2015 alone (ATAG, 2016). If travel and tourism remain on a business-as-usual
pathway, the sector will become an increasingly important source of GHG emissions.
However, climate change itself imposes further risks. While average daily temperatures
could rise around three degrees, maximum daily temperatures could rise as much as four to
eight degrees by 2080. These extreme heat waves are likely to ground one-third of airplanes
in the future, resulting in more costly cancellations and delays (Coffel et al., 2017). Extreme
weather events are also expected to cause more frequent and severe turbulence, especially
on a number of popular transatlantic routes (Williams, 2017). Both government and industry
will require a rethink of aviation and its regulations to prepare for these threats.
Security and border measures not only play an important role in travel mobility, but also
in the customer experience. IATA reports that security wait times are among the top
grievances of travellers, and these complaints are likely to worsen in the coming years
(WEF, 2016). In the United States, for instance, the United States Department of Homeland
Security has indicated that such burdens are inevitable, especially during peak seasons
(Hetter and Pearson, 2016).
Similarly, the World Economic Forum has declared entry visas “one of the worst
bureaucratic inefficiencies for travellers” that can deter people from visiting a destination
(WEF, 2016). In fact, there is some evidence to suggest that countries that have improved their
visa facilitation processes have seen an increase in the number of international visitors of
between 5% and 25%, with positive economic impacts rippling throughout the economy
(UNWTO and WTTC, 2012). On the whole, most countries are seeking to balance enhanced
travel facilitation processes with maintaining or improving border security, while fewer
nations now requiring entry visas from particular citizens. In 2008, destinations on average
required 77% of the global population to have an entry visa, dropping to only 61% in 2015
(UNWTO, 2016b).
Travel and tourism is also highly sensitive to the threat of terrorism, pandemics, and
other large-scale crises. Examples include, the H1N1 outbreak in Mexico in 2009, which
resulted in a loss to the tourism industry in the order of USD 5 billion, and the United States,
which took six years to reach pre-crisis levels following the terrorist attacks on September
11, 2001 (WEF, 2016). More recently, during the outbreak of MERS (Middle East Respiratory
Syndrome) in 2015, more than 54 000 people cancelled trips to South Korea and economists
estimated that the impact on the economy was in the region of several billion US dollars as
a result (Misrahi, 2015).
Natural disasters such as the Hurricane Maria, which devastated Caribbean Islands
including Puerto Rico in 2017, are forecast to grow in regularity and destructive capacity in
the coming years. Such storms have the ability to cripple transport networks both in the

direct aftermath and for extended periods following such events, with potential impacts on
international and domestic accessibility and connectivity.
Political instability can especially dissuade travellers from visiting a destination if there
is a real or perceived threat involved. This will pose a unique challenge in the coming years,
as the global middle class grows and emerging economies account for an increasing
number of inbound and outbound trips. These nations, which tend to have a higher risk of
political instability, will account for nearly 57% of international arrivals by 2030 (WEF, 2016).
Implications for the tourism sector

Managed effectively, transport and tourism synergies can improve visitor mobility to
and within destinations, enhance visitor satisfaction, and help to secure the economic
viability of local transport systems and services by servicing both residents and tourists.
Ensuring that the medium- to long-term needs of the tourism industry are considered by
governments as part of transport access and infrastructure planning can help to maximise
and spread the socio-economic benefits of tourism more widely and manage visitor impacts
over time.
The future growth of tourism and air transport are very much interlinked, and will
depend largely on sustained world economic and trade growth, a growing middle class in
developing economies, as well as declining ticket prices and airline operating costs, which
will be impacted by aircraft technology, improvements in airline resource management
and the price of fuel. Airspace and airport congestion could also constrain the growth of
selected markets (OECD, 2016c).
Policy makers will need to be agile in order to respond effectively to these and other
developments, to implement policies and practices that enable greater traveller mobility
and confidence, while promoting sustainable tourism growth and maintaining or
enhancing security and border integrity. Examples include the likely need for greater
consistency and harmonisation of international standards in relation to safety and
security, and international transport regulations to reflect geopolitical power shifts (e.g.
aviation). Governments might also envisage the need to impose restrictions or limits on
inbound (e.g. visa restrictions) or outbound travel (e.g. carbon footprint limits or mandatory
carbon offsetting), in order to meet international emissions reduction commitments and/or
achieve sustainable development goals.
The aviation industry in particular will face significant challenges as a result of
climate change and increased demand for air travel. Emerging literature suggests that the
industry may need to brace for thinner profit margins or push more aggressively on climate
action, by designing lighter vessels or developing engines that produce fewer emissions
(Williams, 2017; Coffel et al., 2017).
However, global market based measures that incorporate the price of carbon are likely
to be one of the most effective mechanisms to reduce emissions with potential
implications for both short and long haul destinations. There is evidence to suggest that
increasing the price of travel may be the only way to have a meaningful reduction in GHG
emissions. However, policy options to reduce the impact of tourism on climate change will
need to reflect the wider context of tourism’s place in the structure of a country’s economy
and, more broadly, the complex dimensions that underpin a country’s connectedness to
the global economy (OECD/UNEP, 2011).

At the destination level, good accessibility will continue to play an instrumental role
in overall competitiveness and in spreading the benefits of tourism beyond major centres.
The provision of suitable infrastructure and adequate means of transportation are
fundamental requirements to facilitate the mobility of tourists. In order for tourism to
deliver on its potential as an engine for economic growth, it requires access to source
markets and multimodal transport systems in-country that offer convenience, capacity,
reliability and connectivity to suit all destination types (e.g. integrated seaside resort, or
small scale isolated eco lodge). By promoting the development of intermodal hubs and
gateways, transport policies at the national and sub-national level can not only help
attract, manage or direct visitor flows but also facilitate a shift to more eco-friendly
transport options, which can help consolidate a destination’s reputation as sustainable.
Many of the underlying difficulties in meeting the associated infrastructure challenges
can be attributed to governance issues that span infrastructure planning, policy,
regulation, financing, procurement and management. The importance of institutional
coordination cannot be stressed enough when it comes to the seamless operation of
multimodal transport systems. Good governance at all levels of government and
co-operation with the private sector is needed to improve decision-making and create
incentives to invest in connectivity. There is a need to think in terms of mobility systems
rather than modes and modal networks.
In addition to diversifying the tourism offer, better connectivity with regional and
rural destinations can serve another function by helping to eliminate overcrowding and
infrastructure pressures in major tourism centres. Such issues have become prevalent
among popular tourist destinations such as Barcelona, Amsterdam and Santorini, all of
which have found it challenging to manage massive inflows of tourists. Transportation
infrastructure initiatives could be beneficial in destination planning and combating
“over-tourism” by improving access to nearby destinations.
Given the anticipated growth of the Asian region as a source market for global tourism,
jurisdictions are pursuing targeted initiatives to improve mobility and increase access. For
example in November 2014, the United States and the People’s Republic of China concluded
a reciprocal visa validity arrangement to strengthen the ever-broadening economic and
people-to-people ties between the two countries. Both countries agreed to increase the
validity of short-term tourist and business visas issued to each other’s citizens from one to
ten years – the longest validity possible under United States law – and increase the validity
of student and exchange visas from one to five years. This arrangement will improve trade,
investment, and business ties by facilitating travel and offering easier access to both
economies. Since this policy change was implemented, Chinese demand for United States
visas has grown by more than 50% compared to the same period in 2014 (OECD, 2016b).
In 2017 the Australian and Chinese governments established held the “China-Australia
Year of Tourism”, to increase tourism between the two countries and provide opportunities
for further engagement at the economic, commercial, social and academic levels. Australia
commenced a trial Frequent Traveller Visitor visa for Chinese nationals in December 2016,
valid for up to ten years and allowing multiple short stays of up to three months for tourism
or business. Other Australian initiatives for the Chinese market include online lodgement for
visitor visa applications; trials of a fast-track (48-hours) visitor visa processing service; and a
simplified Chinese lodgement option through a service delivery partner. Similarly, 2018 will
be the EU-China Tourism Year, with the multiple aims of i) promoting lesser known

destinations, ii) improving travel and tourism experiences, iii) providing opportunities to
increase economic cooperation, and iv) providing a launchpad to make progress on EU-China
visa-facilitation and air connectivity. Additionally, the governments of Canada and China
have officially named 2018 the Canada-China Year of Tourism, with the goal of doubling two-
way visits by 2025, based on 2015 statistics.
Another example of the type of innovative measure that national governments and
industry are seeking to introduce to improve travel mobility across borders is that recently
introduced by the Airports Council International (ACI) and IATA. The Smart Security
Strategy is a multi-pronged strategy to modernise security measures at the border for ease
of mobility (Box 2.5).
Box 2.5. Airport Smart Security Strategy

Security checkpoints continue to be among the greatest grievances for travellers and
much of the technology and conventional measures used at the border have become
outdated and inefficient. Given the anticipated growth in air travel to 2040, evolving
security threats and passenger dissatisfaction with queues and intrusive measures, a
strategic partnership between Airports Council International (ACI) and IATA was
established to develop a Smart Security Strategy. The two organisations have signed a
memorandum of understanding to leverage their respective resources and expertise to
“improve the journey from curb to boarding” (IATA, 2013).
Smart Security is a three-pronged strategy to integrate risk-based security concepts,
advanced screening technologies, and process innovations in order to streamline security
processes and improve the passenger experience. Priority components include passenger
screening, cabin baggage screening, alternative detection methods, checkpoint environment
and management, centralised image processing and risk-based differentiation.
Improvements in these areas, such as advanced detection algorithms, can help to improve
the ability of “future-proofing” security measures in response to evolving threats and
demands of the aviation industry (ACI and IATA, 2017).
Smart Security has been piloted in several international airports such as Amsterdam
Schiphol, London Heathrow, and Melbourne International, and passenger satisfaction
surveys have indicated that these trials have been successful (Future Travel Experience,
2016). ACI and IATA have embarked on a second wave of these developments, and continue
to hold workshops and events around the world to facilitate knowledge translation.
Multi-destination visas such as the Schengen Area in Europe, the Economic

Community of West African States (ECOWAS), Borderless Borders in East Africa, and a
planned ASEAN single visa, are becoming more common. These schemes can offer
dramatic reductions in costs, enhance the attractiveness of destinations, allow multiple
governments to share the burdens of processing, security screening and administration, as
well as improve regional security and data-sharing.
Trusted traveller programs such as the APEC Business Travel Card (ABTC) are also
becoming more popular as a means of improving efficiency and harnessing big data. The
ABTC scheme, for example, helps to enhance border integrity and security in participating
economies by increasing the number of low risk travellers – those checked against “watch
lists” of other participating economies. According to the APEC Policy Support Unit, the
scheme reduced transaction costs for ABTC holders by 38% between 2010 and 2011,

representing a total savings of USD 3.7 million. Total at-the-border immigration time
savings experienced by ABTC holders during the same period was 62 413 hours, with
monetary value of USD 1.9 million.
Preparing for megatrends

How should policy makers begin to prepare for the challenges and opportunities posed
by megatrends that will play out over the next quarter of a century? There are major
uncertainties inherent in predicting the particular path of certain megatrends, such as the
impacts of certain technologies. Meanwhile, other trends, such as aging populations, are
more assured in their path but still come with questions in terms of likely impacts and
most effective ways to respond. Consequently, the best approach for policy makers should
be to consider how to build systemic and strategic approaches to adapt in an increasingly
fast-moving, inter-connected and dynamic environment.
In addition to adopting an integrated governmental approach, there are three key areas
that require focus: i) modernising regulatory and legislative frameworks, ii) cultivating
partnerships with key stakeholders and i) exploring ways to future-proof policies.
Modernising regulatory and legislative frameworks

The emergence of new business models and technological innovations in recent years,
such as ride-sourcing and home-sharing platforms, have highlighted the urgent need for
governments to develop more flexible and adaptable regulatory and legislative frameworks.
Given the likelihood of continued fast-moving technological developments in the sharing
economy, as well as the rise of artificial intelligence, more pressure will be placed on existing
frameworks. As a result, these reforms will only become more pressing.
Undertaking regular reviews of regulatory frameworks to remove outdated requirements
and promote the emergence of innovative approaches to delivering goods and services is
one such strategy. Broadly engaging stakeholders in the development of new regulatory
frameworks to ensure that the perspectives of new and emerging market entrants are
reflected is also critical.
Greater inclusion of, and support for, predictive mechanisms in the policy and
regulatory process is also a key means of ensuring that policies developed today are not
obsolete before they come into force. Both new and existing frameworks should be
assessed against medium- and long-term trends.
Cultivating partnerships with industry, other governments and key stakeholders

The impacts of megatrends and the process of policymaking generally, are more cross-
cutting both sectorally and jurisdictionally than ever before. Travel mobility issues that
involve visa and security coordination among jurisdictions, sustainable approaches to
tourism for resources that are shared among countries, and the challenges of regulatory
digital platforms that operate globally, all illustrate the increased need to think beyond
local and national issues to craft effective responses.
A renewed focus and investment in international and regional fora that can look at
horizontal issues effectively and develop shared governance and policy responses is one
means to ensure responses are balanced and effective. Furthermore, increased engagement
with key stakeholders (industry and civil society) in the tourism and related sectors should
also be a priority. For example, the Turkish Ministry of Culture and Tourism recently brought

together over 300 tourism stakeholders including Ministers, tourism leaders, local
authorities, and NGOs at a meeting of the Tourism Council, in order to better understand key
tourism trends and inform the preparation of a new long-term tourism strategy and action
plan. Understanding how best to adapt infrastructure needs for an aging population will
require conversations with officials and representatives from financing, infrastructure,
housing, planning, social services and many other ministries. Tourism policy makers will
play a key role in articulating issues but the policy remit will often lie elsewhere.
The need to engage more closely with industry and ensure that the perspectives of
SMEs, emerging businesses and traditional operators are all understood is a vital
consideration as the sector takes on a different shape in the coming years and decades.
Policy makers need to ensure that while they develop approaches that prioritise the public
interest, the perspectives of businesses on the cutting edge of new and innovative
approaches to delivering services are essential to shaping those decisions. Industry-
government tables that consider medium- and long-term issues on which to prioritise
action, offer one possible way of developing and ensuring close and regular engagement.
Taking steps to future-proof tourism policy

Governments can often be challenged when faced with rapid changes and shifts to the
status quo. Promoting a culture of innovation and change management within government
will be vital to ensuring that long-term megatrends are given due consideration within the
decision-making process. The use of innovation labs and design labs which tackle forward-
looking issues through creative engagement with a broad range of internal and external
stakeholders is one potential means of promoting a culture of continuous improvement
and future-oriented thinking.
Long-term scenario planning exercises are another way to begin conversations about
potentially transformative changes on the horizon. Examples of country approaches
include Finland’s national foresight network, which is designed to leverage data to inform
decisions and prepare for the future, as a potential model for anticipating and preparing for
change (Hartikainen, 2015), while Austria’s Federal Ministry of Science, Research and
Economy conducted an extensive study and scenario planning exercise to address trends
posed to influence the tourism sector specifically (Box 2.6).
Policy makers focused on tourism will also need to work closely with their colleagues
in other ministries to develop systems that can measure and monitor megatrends such as
demographic change in order to better prepare for their impacts. Where these systems
already exist, they need to be leveraged to anticipate and prepare for potential policy and
service delivery changes that may be required. These systems also require robust data to
analyse and stay abreast of key megatrends, how they are unfolding and whether any
course corrections or adjustments are occurring or require action.
Finally, in a public sector environment where data is increasingly driving decisions,
the ability to harness and make sense of that data becomes increasingly important.
Tourism policy makers must ensure that they either have the capacity to make data-driven
decisions or that other departments with that capacity are fully briefed on key tourism
trends and issues to play a supportive role.

Box 2.6. Is everything different? Tourism 2025 (Austria)

Despite the unpredictability of megatrends and the impacts they may have, governments
can begin to take steps to “future-proof” policy through long-term thinking and scenario
planning exercises specific to the tourism industry. Austria’s Federal Ministry of Science,
Research and Economy recently conducted one such project in collaboration with the
Interdisciplinary Research Centre Tourism and Leisure of the University of Innsbruck.
The study, “Is everything different? Tourism 2025” delivered a comprehensive analysis of the
trends and drivers impacting the country’s tourism sector, mapped out both positive and
negative scenarios to 2025, and provided recommendations for policy development
accordingly.
In order to paint a complete picture of the supply and demand sides of the sector, the
study took a threefold exploratory approach to data collection. This included a systematic
media analysis, qualitative interviews with key experts, and a workshop to evaluate the
empirical results. Key driving forces were identified – such as geopolitics, climate change,
ecological drivers, demographic drivers, economic drivers, and technological drivers –
which together push six trend areas. For each trend, a number of challenges were
highlighted and recommendations made to address them.
For example, demographic drivers have changed tourist behaviour, resulting in more
guests going online to book trips, post reviews and share information. To address this, the
report recommended that the tourism sector think about the technical requirements to
facilitate these experiences, such as ensuring access to wifi in rural communities and
offering professional digital communication with guests.
The recommendations made in the study involve government, industry, interest groups
and research stakeholders and initiatives. In order for success to be realised, co-operation
and joint efforts between all stakeholders in the tourism sector will be necessary
(www.bmwfw.gv.at/Tourismus – available in German only).
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© OECD 2018
PART I
Chapter 3
Towards investment and financing

for sustainable tourism
Investment and financing has an important role to play in supporting the transition to
low carbon, resource efficient and socially inclusive tourism development. This
chapter examines the need for a shift toward investment and financing practices that
support sustainable tourism, and explores policies, institutions and instruments for
green finance and investment relevant for the sector. It highlights good practices that
catalyse and support the transition to a green, low-emissions and climate-resilient
tourism economy, and offers guidance to policy makers on how to move forward.
93
I.3. TOWARDS INVESTMENT AND FINANCING FOR SUSTAINABLE TOURISM
T ourism, as one of the most promising drivers of growth for the world economy, can play
an important role in driving the transition to a green economy, and contributing to more
sustainable and inclusive growth. With close connections to numerous sectors at destination
and international levels, even small improvements toward greater sustainability in tourism
will have important impacts.
Investment and financing is an essential part of this. The possibilities are wide-
ranging, and include public and private investment in low carbon transport options and
the construction of resource efficient tourism infrastructure, as well as initiatives to
support innovation, promote the adoption of responsible business practices and encourage
the integration of tourism businesses into low carbon and sustainable tourism supply
chains (Box 3.1).
Box 3.1. Investment opportunities to support green innovation in tourism

Energy-efficient transition: in the accommodation sector there is ample scope for
investments in green performance, including improvements to refrigeration, television and
video systems, air conditioning, heating and laundry.
Water management: there is scope for financing green performers improving internal
water efficiency per guest.
Waste management: there are many dimensions on which improving waste management
can increase tourism sustainability, improving resource efficiency, enhancing the
attractiveness of destinations, and creating job opportunities.
Biodiversity: maintaining ecosystems is at the core of sustainable tourism. There are
opportunities for green performers and green innovators in protecting the natural resource
base while mainstreaming sustainable tourism.
Cultural heritage: investments that maintain the cultural heritage while offering
opportunities for continuation, rejuvenation or enhancement of traditions improve the tourism
offer and contribute to distributing the benefits of tourism among the local population.
Source: OECD (2013a).
This chapter examines the need for a shift toward investment and financing practices
that support sustainable tourism, and explores policies, institutions and instruments for
green finance and investment relevant for the sector. It highlights good practices that
catalyse and support the transition to a green, low-emissions and climate-resilient tourism
economy, and offers guidance to policy makers on how to move forward.
Policies to address the investment gap for sustainable tourism development

Sustainable tourism development is tourism which takes into account current and
future economic, social and environmental impacts, and addresses the needs of visitors,
the industry, the environment, and host communities. Incorporating sustainable practices

in consumption and production of tourism services implies a change in the mind-set of

stakeholders, increasing awareness of the fact that incorporating sustainable practices in
their daily activities is for their own benefit in the long run, as it enables the preservation
of the environment that is one of the main drivers of tourism.
With the strong forecast growth in global tourism to 2030, significant investment will
be required to provide the accommodation, transport and other tourism-related services
and infrastructure necessary to meet expected demand, while enhancing economic, social
and environmental outcomes. This will require an integrated approach across many
departments (e.g. transport, environment, agriculture, innovation, education, tourism) and
levels of government (national, regional, local), with input and support from industry.
Investment will also be critical in managing this growing tourism in a sustainable manner.
The OECD is working to strengthen the investment environment and better mobilise
public and private resources to support resilient, sustainable, green and inclusive growth
which benefits the whole of society. With public budgets likely to remain tight for some
time to come, all levels of government will have to do better with less by investing more
efficiently (OECD, 2014). There is also a growing recognition of the need for more innovative
and sophisticated financing strategies, and governments are searching for new tools with
a stronger focus on the private sector.
Like many other sectors, tourism faces a range of significant sustainability-related
challenges. However, with growing awareness of the need and value of conserving unique
natural, social and cultural assets, there is increasing motivation for both the private and
public sectors to invest in making tourism more sustainable. Investment in sustainable
tourism offers environmental and social benefits, as well as opportunities to generate
significant returns, notably in the areas of energy, water, waste and biodiversity.
Public sector intervention aims to preserve tourism’s potential for economic
development and social inclusion, and correct for actions that lead to too much investment in
polluting technologies and too little investment in low-carbon, climate-resilient or resource-
efficient technologies. The high environmental quality that attracts tourists can often be
diminished by those same tourists and the services that cater to them, through increased
pollution and the depletion of natural resources, water and biodiversity, among others.
Another area of focus is devising appropriate mechanisms to leverage private
investment, especially as government budgets tighten. Investment and financing for
sustainable tourism development does not necessarily require the creation of new
instruments, but rather better connecting tourism projects with available green and other
financing instruments. Traditional and innovative finance mechanisms exist that integrate
tourism intrinsic characteristics (i.e. seasonal flows, intangibles production), from standard
debt finance which is the main external finance source for small tourism firms, to equity and
hybrid instruments favoured by high-growth and innovative firms. Finance mechanisms can
also be extrapolated from other industries that rely on (renewable) natural assets and from
other policy objectives, such as group lending by microfinance institutions.
In order to achieve more sustainable development and deliver on the ambitious targets
to reduce poverty and combat climate change set out in Agenda 2030 and the Paris
Agreement, investment in the green economy needs to take place on a far greater scale
over coming decades. Indeed, the Paris Agreement established the goal of “making
financial flows consistent with a pathway towards low greenhouse gas emissions and
climate-resilient development”. The scale of the transition to a green, low-emissions and

climate-resilient economy is perhaps the biggest structural adjustment ever proposed in

the field of international governance.
Tourism has a key role to play in this, and the sector is particularly well placed to
contribute to increasing employment rates, enhancing social cohesion, improving
productivity and fostering economic growth across many portfolios, given its strong local
dimension. Moreover, the cross-cutting nature of tourism means that even small
improvements towards greater sustainability in production and consumption patterns will
have important impacts.
Financing the transition to a more sustainable model of tourism development faces a
set of challenges, however, including the suitability of available finance instruments,
information on the impact of green investment in tourism, (dis)incentives to adopt green
business practices, and the extent to which the policy framework is supportive. Successful
policy intervention requires significant co-operation and coordinated strategies across
government, and between different levels of government, as part of a comprehensive
national long term plan, given the length of time needed to realise many environment
preservation measures. It also demands the involvement of the private sector and civil
society, and the sharing of best practices and new ideas between the various actors driving
the shift to a new model of sustainable tourism development.
Policy considerations
Based on the analysis discussed in this chapter, key policy considerations to further
promote and mainstream investment and financing for sustainable tourism development
include:
● Promote access to finance for sustainable tourism investment projects of all sizes.
Direct public intervention includes grants and subsidised loans with environmental
criteria to support tourism firms with sustainable project proposals in the start-up and
early stages, as well as businesses willing to incorporate sustainable practices in their
daily operations. Encourage uptake of green financing instruments for tourism projects.
Tailored supports for small tourism businesses may be warranted where such
intervention supports environmental and sustainability objectives. Care should be taken
to avoid crowding out the private sector. Indirect finance instruments (public credit
guarantees) can be used to overcome the lack of collateral related to the production of
service-based intangibles, and the transition towards greener processes. Consider
promoting public private partnerships to finance sustainable infrastructure investments
and renovations. Devising risk-sharing mechanisms to foster private sector participation
in the financing of sustainable tourism development can also help.
● Incentivise the transition towards low carbon, climate resilient investments and
encourage more responsible business practices in tourism. Private sector strategies can
help to address the sustainable tourism investment gap and green investors should be
actively targeted and supported. Tourism businesses need to be better informed about the
business case for adopting sustainable practices, and encouraged to take into account the
impact of their actions on the environment. Integrate environmental and social criteria
into tourism policies and programmes, including tourism investment facilitation and
promotion activities. If it is necessary to introduce measures to constrain environmentally
harmful activities by tourism firms, for example by establishing congestion prices or taxes,
the potential distortions these policies might generate should be considered.

● Build capacity and better coordinate actions across government to support the shift to
more sustainable tourism investment and financing practices. A coherent and
consistent policy framework is needed to provide an enabling environment for
sustainable tourism investment. This involves coordinating actions across different
policy areas, including tourism, environment and innovation, and across different levels
of government. Improve accountability by assessing the impact of sustainability factors
upon financial stability and long-term investment. Identify and share knowledge about
approaches to increase the effectiveness of investment in managing growing tourism
demand in a sustainable and inclusive manner.
● Improve data and analysis on finance and investment in sustainable tourism
development, including the use of green finance in tourism. Limited information is
available on the effectiveness of available financing instruments and incentives in
supporting more sustainable production processes and encouraging more responsible
business practices in tourism. More evidence is also needed to accurately integrate
environmental risk into the tourism financing and investment decision, and develop a
better understanding of the economic, social and environmental outcomes of tourism
investment. Standardising definitions of green finance and the environmental goods and
services related to tourism can be used to tag lending amounts to sustainable tourism
development objectives.
Financing sources for sustainable tourism investment

The financing options for tourism investment can be of public or private, and domestic
or foreign origin. In the past, there has been a lack of diversity in financial institutions
offering long term capital for the sustainable financing needs of tourism firms, including
small and medium sized enterprises (SMEs) (United Nations Environment, 2017), and the
magnitudes traded for sustainable tourism development at a global level are still not
significant.
This situation is changing. There is increasing motivation for both the public and private
sectors to invest in making tourism more sustainable, and the market for green bonds and
other sources of green financing is expanding. In Finland, for example, 25% of European
Regional Development Funds are being directed toward low-carbon activities over the period
2014-20. New and expanding business opportunities have been financed that reduce carbon
emissions, including in the hotel sector. The United Nations Environment Programme
Finance Initiative, meanwhile, brings together over 200 financial institutions, including
banks, insurers and investors committed to integrating environmental and social
considerations into all aspects of operations, some of which fund tourism (Box 3.2).
Public sector involvement in financing sustainable tourism development is essential, to
unlock finance, provide incentives and build capacity. This is demonstrated by the activities
of supra-national, national and sub-national public finance institutions, including green
investment banks which target and tailor financing to facilitate private investment in low
carbon climate resilient infrastructure. A broad set of finance instruments is also important,
ranging in profile from low to high risk/return, and catering to firms at different stages of
development.
Public finance institutions have a development mandate beyond economic and
financial viability, and can extend subsidies and other supports to environmental and
social projects. Institutions operating at regional or local level are particularly well placed

Box 3.2. Support for tourism through the UN Environment

Programme Finance Initiative
United Nations Environment Programme Finance Initiative is a partnership between UN
Environment and the global financial sector with the mission to promote sustainable
finance. Participating financial institutions, including banks, insurers, and investors sign
up to the UNEP Statement of Commitment by Financial Institutions on Sustainable
Development, with specific funding programmes provided for sustainable tourism:
Triodos Bank, for example, provides loans to sustainable tourism businesses to invest in
property purchase and development, on-site renewables and green tourism accreditation.
It has supported the development of sustainable hotels in the United Kingdom, including
providing a loan to Wheatland Farm to install a wind turbine to power the Balebarn Eco
Lodge. Triodos Bank only lends to businesses that have been or are in the process of being,
Green Tourism-certified. It provides a 1% interest rate discount for businesses working
towards gold certification. Another example is the funding provided to Biosphere
Responsible Tourism, a certification organisation for sustainable destinations.
Turkish Development and Investment Bank (TSKB) provides financing and consultancy
services for green building investment in the tourism sector. It funds investment in energy,
water and waste management, green material usage, and social impact management. The
tourism sector makes up 8% of the TSKB credit portfolio, with an allocated credit of
EUR 309 million and 24 new hotel and renovation investments.
Source: UN Environment, www.triodos.com, www.tskb.com.
to overcome location-specific investment barriers, while multi-lateral finance organisations

can scale up and diversify the inherent environmental risk by joining several environmental
projects in different countries.
The Nordic Investment Bank, for example, finances the development of sustainable
projects of all sizes in the Baltic region, including green road infrastructure projects in Finland
and environmental projects for SMEs in Norway. As of October 2017, five tourism-related projects
are financed. In Norway, the City of Bergen has a 20 year loan programme of EUR 108 million
to finance the wastewater treatment system, where tourism is growing. The city welcomes
about 500 000 visitors and 350 cruises annually. In Iceland, the tourism sector benefits (along
with fisheries, real estate and farming) from a EUR 66.6 million loan programme over 7 years
to finance investments and environmental projects for SMEs, as well as a 10 year loan
programme worth EUR 12 million to finance R&D and ICT infrastructure.
The European Union has implemented diverse initiatives to support the development
and promotion of sustainable and responsible tourism. The European Commission
supported around 100 projects over the period 2014-2016, under the Programme for the
Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME), for
example. These include the development of transnational cycle or hiking routes,
environmentally-friendly tourism, and European Cultural Itineraries. In the context of the
European Destinations of Excellence (EDEN) initiative, the Commission co-financed with
national administrations the promotion of 140 lesser-known destinations which stand out
for their sustainable tourism engagement. Beyond this, the tourism sector can benefit from
wider sustainable investment supports promoting the low carbon economy, sustainable
energy and sustainable management of natural resources, including the European Structural
and Investment Funds 2014-2020 and the European Fund for Strategic Investments. A Guide

on EU Funding to the Tourism Sector has been developed by the Commission to help those in
need of investment financing to identify the different available sources.
Public sector intervention can be direct, such as financing or co-financing sustainable
tourism projects, or creating and investing in companies that bring in processes or services
that reduce negative environmental impacts while increasing productivity. Canada,
Finland, France and Singapore have introduced direct Cleantech initiatives, for example,
but to date, the potential of such approaches to support sustainable tourism development
remains untested.
In Spain, the Ministry of Energy, Tourism and the Digital Agenda, recently introduced a
grant initiative which allocates EUR 60 million to foster digitalisation and energy efficiency
uptake by using ICTs in local tourism destinations. The first open call for proposals provides
financing of up to a maximum of EUR 6 million per project, with co-participation from each
firm of about 20-40% of the requested funding amount. This initiative is partially funded by
the European Regional Development Fund (Box 2.4). A biannual line of subsidies for energy
efficiency in the hotels and accommodation sector was also launched by the Spanish
Institute for Official Credit and the Spanish Institute for Diversification and Energy Saving in
2017, with a budget of EUR 30 million.
More often, however, public sector intervention is indirect, to support private sector
financing and investment. In this case, the financial instrument suitable for green projects can
be two-fold: either conventional debt and equity instruments that integrate environmental
criteria, or innovative products to address the special needs of the green economy, such as
alternative loan structures, property-linked efficiency financing and insurance for green
assets. This indirect intervention can be either subsidised, or at market rates to avoid crowding
out the private sector, with the focus normally being the environmental solution rather than
specific sectors, like tourism.
The rationale for such interventions is to provide financial and economic additionality,
by offering instruments that the private sector does not provide, and by harnessing the
development of sustainable tourism objectives through, for example, targeted green lending.
Financing options through the private sector include conventional debt, equity or hybrid
instruments. Debt instruments, including loans, are a common source of external financing
for tourism businesses of all sizes, with hybrid instruments that combine debt and equity
less used by tourism SMEs. Crowdfunding can be either debt- or equity-based, and holds
strong potential for tourism. Innovations in the finance sector which reduce transaction and
borrowing costs, so-called “fintech”, are also opening up new finance opportunities in
tourism. Civil sector organisations also act as a facilitator of private investments, through
crowdfunding, venture capitalists, business angels, microfinance institutions, and
channelling positive impact finance helping to close the sustainable tourism investment gap
(e.g. Responsible Finance in the United Kingdom) (Box 3.3).
Box 3.3. Finance instruments for sustainable tourism development

Public instruments:
● Direct: includes creating or investing in companies that bring in processes or services
that reduce negative environmental impacts while increasing productivity i.e. CleanTech
ventures.

Box 3.3. Finance instruments for sustainable tourism development (cont.)

● Indirect: includes subsidised loans or grants, market-based loans (targeting green lending,
alternative loan structures, property-linked efficiency loans), (partial) credit guarantees,
insurance for green assets.
Private instruments:
● Market: includes debt finance (loans, green bonds, mini-bonds), equity and hybrid
instruments (mezzanine finance, crowdfunding) and fintech innovations in the finance
sector that reduce transaction and borrowing costs (blockchain, learning algorithms,
smart contracts).
● Impact investment: includes blended finance, positive impact finance, microfinance and
rewards-based crowdfunding.
Challenges for sustainable tourism investment and financing

Financing the transition to a more sustainable tourism model involves a number of
challenges, which can be grouped along four main dimensions. On the supply side, there is
a lack of suitable finance instruments available for sustainable tourism projects. There is
also a need for standardised definitions around what constitutes “green” investment, as
this is a critical element in promoting sustainable development. On the demand side, the
incentives for firms of all sizes to adopt environmentally and socially sustainable practices
are weak, while the capacity of policy makers to design, coordinate, implement and
enforce sustainable tourism development policies is also an issue.
Availability of suitable finance instruments for sustainable tourism projects

The ability to finance large sustainable tourism investment projects (e.g. hotels and
resorts, attractions, transport, tour operator and other services) can be challenged by a lack
of suitable finance instruments. One reason for this is a maturity mismatch: depositors and
investors typically prefer to liquidate assets quickly, with the result that available finance
instruments tend to be for a shorter term than the longer time period required to realise the
investment project and become profitable. This is particularly the case for infrastructure
investments.
Financing small tourism projects presents challenges linked with their size which may
require public intervention, as higher transaction costs (related to low volumes traded)
result in difficulties in accessing external finance (OECD, 2006; 2013b). Regulatory rigidities
and an insufficient legal framework can also obstruct the ability of the financial system to
provide products adapted to the needs of small firms. This is particularly a challenge when
firms are subject to seasonal flows, as with many tourism businesses.
For small and medium tourism enterprises willing to introduce sustainable practices
into existing business operations, resource productivity investments or energy efficiency
renovations might be catalogued as “working capital” requirements. These businesses may
not possess the necessary collateral to secure external financing. The issue of collateral is
particularly challenging as many tourism businesses are involved in the production of
service-based “intangibles”, and it is not clear whether and how these intangibles can be
used as collateral.

Another barrier is that the limited set of sustainable financing products available is
focused on energy efficiency transitions, and overlooks other sustainable measures (UN
Environment, 2017). This may in part explain why the majority of examples of sustainable
tourism projects identified in the work to prepare this chapter relate to energy efficiency,
particularly in the hotel sector. It has proved more challenging to identify the use of green
financing to support and encourage more diverse investment projects throughout the
tourism value chain, including the creation of more sustainable tourism products, services
and experiences.
Furthermore, when finance is sought for sustainable tourism projects, the failure on
the part of financing institutions to take into account a full and accurate assessment of the
environmental risk in the finance decision hinders the creation and adaptation of finance
instruments to sustainable tourism development. This is especially true for innovative
projects, which are intrinsically riskier due to their original and untested character.
Innovative investments in environmental projects face an additional risk: failure to
integrate the effects of degradation of natural assets on the investment. This is an
important issue for tourism, as one of the main drivers of tourism is the quality of the
environment. Tourism investment, and the visitor flows it supports, can damage and
deplete these natural resources, while extreme events (e.g. floods) due to climate change
can negatively impact a proposed infrastructure or other tourism-related project. Further
transition risks include the potential change in rules and regulations, shifts in consumer
markets, or technological innovations by firms in response to environmental degradation,
each of which can increase return on the investment volatility (Ministry of Environment,
Territory and Marine Protection, Italy and UN Environment, 2017).
Public sector intervention focuses on creating the enabling conditions for private sector
investment in sustainable tourism projects. This includes earmarking funds for
environmental and social policy objectives, and collecting and disseminating data to help
actors create suitable instruments. It also involves assessing whether the introduction of
financial market reforms are necessary to stimulate private investment to support green
growth, and devising measures to systematically take into account the cost of environmental
and social externalities when pricing risk and in the finance decision (OECD, 2017a).
This needs to be done in a credible way, taking into account national circumstances and
potential competitiveness impacts. Policy instruments will differ depending on if the pricing
problem in tourism is due to lack of data, financing institution expertise, or capacity at
regional or local level. Designing investment policies to support sustainable tourism
development also involves using environmental valuation techniques to ensure that cost-
benefit analysis takes into account the cost associated with the depleted resources and
environmental degradation. Here, the OECD Policy Framework for Investment (2015a)
suggests clearly identifying the existing mechanisms in place to stimulate private
investment to support green growth, and ensure value for money.
While sustainability finance is increasingly being used by financing institutions as a
lever for low carbon climate resilient transition, the magnitudes traded are still not large
enough to leapfrog towards definite impacts. This situation is not unique to tourism, and
is in part due to the perception that returns are too low relative to the level of real or
perceived risk, and financial institutions have limited incentives to invest in sectors with
high development impact (MATTM/UN Environment, 2017). Some business environment
characteristics may also obstruct sustainable tourism development, such as the presence

of knowledge and capability gaps on the part of private investors, and what may be a
difficult local and global investment climate.
The challenge for governments is to ensure that public policies and investment
conditions facilitate the reallocation of investment from high-carbon to low carbon climate
resilient options, including for tourism (OECD, 2015b). A further challenge is to mobilise
private finance for projects supporting the transition to green growth, without crowding out
the private sector (OECD, 2011). Advanced economies in particular face need to update and
renovate existing infrastructure (i.e. brownfield investments), while emerging economies
need new infrastructure investments (i.e. greenfield investments).
Measurement of green finance interventions for tourism

Green finance comprises financial instruments with the specific purpose of delivering
environmental benefits by tackling issues such as clean energy production, air pollution,
biodiversity loss, climate change and resource efficiency, as well as waste and water
management (MATTM/UN Environment, 2017). This includes green bonds, whose proceeds
are earmarked for environmental projects and assets. The OECD Green Growth report
highlights that green-labelled bond magnitudes are still small compared to the global bond
market, but nonetheless estimates that it amounted to USD 42 billion in 2015.
At time of writing, no internationally agreed definition of green finance exists (OECD,
2017b) and a lack of data on green investments remains a challenge, not least because it
contributes to the failure to adequately take environmental risk into account in the finance
decision. Small tourism businesses face particular challenges in this regard, as low
productivity and lack of interest in growing the business means that finance institutions
are unwilling to lend (OECD, 2017a), even where the productivity measurement may be
underestimated if tourism businesses invest in cleaner technologies and more efficient use
of natural resources. Also, financial interventions are usually tagged according to the
environment solution provided, rather than the sector served, in this case tourism.
Such information as does exist is reported at the general level, with no sectoral
breakdown possible, including for tourism. This means it is not possible to know the extent
to which green instruments are financing environmental projects in the tourism sector, and
to assess the impact of these investments. Where evidence is available, it indicates that
green finance is being used to finance transport-related infrastructure investments relevant
to tourism, as in the case of the new Mexico City Airport in Mexico, and the rail infrastructure
in France (Box 3.4).
A recent initiative by OECD and Eurostat has categorised environmental goods and
services to enable their use by other sectors to be characterised for statistical or analytical
purposes (air pollution control; waste water management; solid waste management;
remediation or clean-up of soil and water; noise and vibration abatement; monitoring, analysis
and assessment; cleaner technologies and production groups; and resource management
group) (European Commission, 2016).
This framework could serve as a useful benchmark to measure sustainable consumption
and production for tourism-related environmental goods. Tagging public and private sector
resources to these characteristics would provide systematic data for analytical purposes, and
could increase awareness about the volumes traded in financing sustainable tourism
development.

Box 3.4. Green bond financing for transport infrastructure

in France and Mexico
France: In 2017, the French National Railway Company, SNCF, issued green bonds to
finance rail investment. The funds raised will primarily support investment in the existing
network, but will also be used to develop new projects and strengthen the SNCF Network’s
sustainability strategy. SNCF Network has developed a methodology to measure the
impact of modernisation of the rail network based on CO2 emissions and the consumption
of natural resources. An annual report certified by an external auditor will enable green
investors to monitor the usage of funds and their environmental impact, which extends
beyond carbon emission reduction. A major renovation programme of the rail network
aims to encourage a modal shift toward rail.
Mexico: Green bonds are helping to finance the construction of the new Mexico City
Airport. Issued by the Mexico City Airport Trust, the green bond proceeds will be used to
finance environmentally beneficial projects including a new passenger terminal building,
ground transportation centre and air traffic control centre. An estimated USD 5.9 billion in
potential eligible environmental projects have been identified and will be financed in line
with the green bond framework and Green Bond Principles across six eligible environmental
categories: sustainable buildings, renewable energy, energy efficiency, water and waste
management, pollution prevention and control, and conservation and biodiversity.
Source: www.sncf-reseau.fr, www.moodys.com.
Incentives to adopt environmentally sustainable practices

A key challenge on the part of firms of all sizes, large and small, stems from the fact
that firms often fail to account for the impact of their actions on the environment, and
society as a whole. If there is a cheaper way to operate, firms will rationally choose this
option, unless firms are better informed about the business case for adopting sustainable
practices, are provided with financial incentives to move towards sustainable practices,
and face regulatory constraints to limit non-sustainable actions.
Technological advances are making the transition to green energy sources cost-
competitive, which may encourage more sustainable business decisions. However, it is
estimated that making infrastructure investment low carbon will impose an incremental
cost 4.5% higher than the “business-as-usual” scenario (OECD, 2015b), although this figure
may be lower for service producers such as tourism. This indicates a role for policy to
encourage tourism businesses to incorporate environmental and social impacts into their
investment decision making processes, and nudge behaviour toward more sustainable
practices.
Governments can incentivise the actions of firms using pricing instruments to change
behaviour with respect to water, waste and transport, for example by setting up congestion
charges in cities and popular tourism sites, shifting the tax burden in favour of
environmentally-related taxation, eliminating environmentally harmful discrepancies in tax
systems, or managing subsidies to promote green technologies and phasing out
environmentally perverse subsidies (OECD, 2015b). Policy actions in this respect can have
significant impacts, given the multiplier effect of tourism investments and the cross-cutting
nature of tourism.

Coordination of actions across government levels

Failure to accurately account for the environmental externalities of tourism projects
can result in negative externalities not being adequately considered. This can lead to too
much environmentally harmful investment (e.g. polluting technologies) and too little
positive investment (e.g. new ecosystem services). In such cases, there is a rationale for
government intervention to restore equilibrium.
However, when government intervention is inefficient, the distortion might be worse
than the issue it is trying to solve. This can occur when confronted with the presence of
one or more of the following situations:
● Fragmented climate policies: For example, maintaining either erratic, overly rigid or
out-dated regulations that create barriers to entry, to the detriment of innovative firms
that want to introduce new sustainable tourism products, processes or organisational
models (known as green innovators).
● Incoherent or non-existent policies to develop sustainable tourism: For example,
preserving subsidies to out-dated technologies, such as keeping environmentally
harmful agricultural subsidies while promoting environmentally friendly tourism
investment in similar geographic locations, or providing insufficient orientation for
innovation systems to advance green growth priorities.
● Presence of weak governance: For example, at global, local or regional levels, weak
institutional arrangements and governance structures can impede the implementation
or enforcement of policies supporting innovation to advance green growth priorities,
such as accelerating improvements in energy efficiency, supporting the development of
green infrastructure, or rewarding environmental and social performance.
● Weak human capital: At the local level, in particular, this can hamper integration of
tourism in community development and the engagement of the private sector.
● Infrastructure challenges: For example, providing the necessary supporting infrastructure
could act as a lever for more sustainable tourism development, including the “greening” of
existing tourism developments.
In such cases, the existence of a market failure per se does not justify government
intervention, as the first three bullet points in the list above highlight insufficient capacity of
policy makers to successfully address the problem (Inter-American Development Bank,
2014). A further challenge is how to mainstream the idea that incorporating sustainability
criteria into tourism investment, monitoring and performance objectives shall be perceived
as conducting responsible operations, not as a disincentive to investors (UNWTO, 2014).
Investing in tourism to deliver on the sustainable development goals

The 2030 Agenda for Sustainable Development sets out a broad and ambitious global
poverty reduction strategy involving both advanced and emerging economies. Tourism has
the potential to contribute, directly or indirectly, to all of the sustainable development
goals (SDGs), but has been particularly included as targets in goals 8, 12, and 14 on inclusive
and sustainable economic growth, sustainable consumption and production, and the
sustainable use of oceans and marine resources (Box 3.5).
Accomplishing the sustainable development goals involves a strong component of
public intervention, especially in ensuring underlying conditions for private sector to
flourish, but also in coordinating and disseminating policy approaches at the national and

Box 3.5. Tourism-related targets in the sustainable development goals

Goal 8: Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all.
● Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that
creates jobs and promotes local culture and products.
Goal 12: Ensure sustainable consumption and production patterns.
● Target 12b: Develop and implement tools to monitor sustainable development impacts
for sustainable tourism that creates jobs and promotes local culture and products.
Goal 14: Conserve and sustainably use the oceans, seas and marine resources for
sustainable development.
● Target 14.7: By 2030, increase the economic benefits to small islands developing states
and least developed countries from the sustainable use of marine resources, including
through sustainable management of fisheries, aquaculture and tourism.
sub-national level. The designation of 2017 as UN International Year of Sustainable

Tourism for Development, for example, aimed to support a change in policies, business
practices and consumer behaviour towards a more sustainable tourism sector, and
contribute to the SDGs.
An international framework like Agenda 2030 can drive investment and finance for
tourism, by channelling overseas development aid from advanced economies towards less
developed countries to foster job creation, sustainable consumption and production
patterns, and a responsible use of marine and water resources. Beyond the direct financial
effect of these disbursements, the fulfilment of the SDGs will also involve country reporting
obligations in a standardised way, which can help in the systematisation and collect data on
investments related to tourism development. It will also encourage the implementation of
supporting policies that set clear signals and provide stability for investment decisions that
support more sustainable practices.
Tourism can also act as a tool to accomplish the SDGs, which in turn can lift the
standards for investment and financing for sustainable tourism, by including in finance
decisions a component for inclusive growth and environmental regeneration. The
underlying rationale for linking three SDG targets with tourism development objectives is
based on the intrinsic local character of tourism activities, as tourism is driven by the
attractiveness of local communities (culture, heritage) and the environment (natural assets
and facilities). The integration of local tourism-related SMEs into international value
chains can also contribute to sustainable consumption and production patterns.
For example, when countries invest in more efficient use of natural resources
(e.g. cleaner technology) and the impacts are not fully understood, productivity can be
underestimated. Achieving a more accurate measurement of the productivity of the
tourism sector and the wider economy can help increase the awareness of the economic
impact of the sustainable use of resources, contributing to target 12.b which refers to
improving the measurement of sustainability actions. Tourism can also play a role in the
fulfilment of many other SDGs, but further work is needed to clarify concepts, design and
agree on measurement definitions and techniques, and support implementation and
training (Laimer, 2017).

Investment has a key role to play in achieving the SDG targets, including those on
tourism. However, UNCTAD (2014) estimate an investment gap of USD 2.5 trillion per year,
as the finance needs are not matched by suitable finance opportunities. It is difficult to
pinpoint how much of this investment need can be linked directly to the tourism targets.
However, estimates for tourism-related infrastructure development (such as roads, rail and
ports; power stations, water and sanitation; climate change mitigation and adaptation) and
food security, health and education linked with the SDGs in developing countries range
from USD 3.3 trillion to USD 4.5 trillion per year.
Policy makers can play a role in closing the gap by using instruments to attract the
participation of the private sector, although private sector participation is more likely in
some sectors (e.g. infrastructure investments in power and renewable energy sources,
transport, water and sanitation) than others (UNCTAD, 2014). Tourism is a sector where
private sector participation can be reasonably anticipated. However, in bringing the private
sector to accomplish the SDGs, policy makers need to balance the opposing needs of
promoting and facilitating investments through easing regulations, and protecting public
interests (UNWTO, 2014; UNCTAD, 2014; OECD, 2015c).
Addressing the investment gap and achieving the SDGs by 2030 will require closer
interaction between advanced economies, emerging economies and developing countries.
Evidence shows that emerging economies face challenges in adapting their production
patterns to include sustainability measures, due to rapid urbanisation patterns. Rapid
tourism growth in these countries is also creating a need for new and effective solutions.
Transferring green technology from advanced economies to developing and emerging
economies through sustainable tourism value chains is one approach to address this, as
90% of green technological innovation originates in OECD countries (OECD, 2017b).
Advanced economies also have the opportunity to update existing infrastructure in a
manner that supports the transition to low carbon climate resilient, helps firms become
green performers, and contributes to more sustainable tourism consumption and production
patterns. Enabling such transition is both directly and indirectly relevant to tourism, and
previous OECD (2013a) work has identified a number of areas suitable for investment in
sustainable tourism (Box 3.1).
Advanced economies, along with international organisations, can also help developing
countries to create bankable sustainable tourism projects, as well as transferring knowledge
and enabling the finance to achieve the SDG targets. One of the main drawbacks cited by
investors is the lack of concrete and sizeable tourism proposals in developing countries, and
technical assistance in both finance and expert advice is required to address this (UNCTAD,
2014). In addition, channelling overseas development assistance towards tourism can help
build sustainable infrastructure and promote green innovators and performers of all sizes.
Mainstreaming investment and financing for sustainable tourism development

A range of possible policy responses to promote and mainstream investment and
finance for sustainable tourism development are outlined and discussed in this section.
These include: policies to unlock financing, provide incentives and build capacity;
facilitation and promotion measures to enhance the business environment and encourage
the dissemination of information; initiatives to promote responsible business conduct; and
measures to improve coordination across levels of government and strengthen the
capacity of policy makers to design, implement and enforce rules and regulations.

The underlying rationale is that there is insufficient investment in innovation aimed at

delivering environmentally and socially friendly outcomes. Investing in sustainable tourism
development presents an opportunity to examine the trade-offs and complementarities with
investment, competition, trade and financial policies as a whole, to coordinate actions and
avoid contradictory impacts. The challenge is that in order to allocate public funds to
sustainable tourism development, an assessment confirming that such an approach is the
best use of public funds is needed, as there are second-order effects and distortions,
consequence of “picking winners/sectors”.
Promoting investment and finance for sustainable tourism development

Finance policy options for sustainable tourism investment can range from the direct
production of green technology to market-based finance instruments. The most common
interventions are subsidising low carbon climate resilient investments through grants and
under-priced loans, or providing market-based loans to the sector, assuming that just
making finance available is sufficient intervention.
Some countries have introduced specific programmes targeting tourism investment.
More commonly, tourism is one of a range of sectors eligible for financing and investment
tools and instruments, including green financing. The challenge here is to better connect
tourism actors with these available tools and instruments.
In Mexico, a tourism initiative to reduce greenhouse emissions and promote the
uptake of green energy in the hotel sector by offering long term loans and public
guarantees has been implemented in the states of Quintana Roo, Campeche and Yucatán.
The intention is to extract lessons from this pilot initiative, in order to assess the viability
of its expansion to the whole Mexican territory (Box 3.6).
Box 3.6. Promoting green energy investment by hotels in Mexico

Since 2015, a pilot programme is being implemented in the Yucatán Peninsula in Mexico,
to increase uptake of green energy by hotels. The programme has been designed by the
Federal Government, Ministry of Energy, National Commission for the Efficient Use of
Energy and the United Nations Development Programme, with the purpose of decreasing
the environmental footprint of the tourism sector by reducing greenhouse emissions. It
provides independent, non-chain hotels with technical advice, training and financing for
the acquisition and installation of solar water heating systems, and aims to generate
savings by reducing gas consumption.
The programme offers long-term loans to finance the replacement of water heating
systems with green solar energy. Loans are for a period of up to five years at fixed interest
rates, up to a maximum value of MXN 15 million. The programme also offers public
guarantees through Bancomext, the development bank for financing international trade,
to support commercial loans, along with interest-rate subsidies from Mexico’s Trust Fund
for Energy Transition and Uptake of Sustainable Energy Systems. The programme has
installed 2.5 million squared-metres of solar heating systems, equivalent to 3 000 hotel
rooms. The end of the pilot programme and thus the assessment is in 2018.
Another public initiative is the klimaactiv mobil programme in Austria, which provides
EUR 80 million in subsidies to ease green mobility transition (e-mobility, mobility
management, promoting bicycle and pedestrian traffic, and flexible public transport and car

sharing). The programme supports firms, local governments and civil associations by
providing up to 20% of the funding costs of the project. While the coverage of the initiative is
wider than tourism, it offers a funding bonus to incentivise regional mobility projects led by
tourism associations.
Other tourism-related policies to achieve more sustainable consumption and
production patterns include renewing and upgrading the existing infrastructure. Bulgaria
has developed programmes and measures to support energy-saving and the use of eco-
friendly technologies in buildings, as well as better management of visitors at tourist sites.
These initiatives focus on controlling air and water quality and achieving sustainable waste
management.
In Australia, a green investment bank charged with increasing the flow of finance to
green projects is active on tourism. The Clean Energy Finance Corporation’s Reef Funding
Program is an AUD 1 billion investment programme targeting clean energy projects in the
Great Barrier Reef catchment area. The programme offers investment finance for
renewable energy, energy efficiency and low emissions technologies across a range of
sectors, including tourism and agriculture.
In a separate initiative, the Corporation offers innovative and affordable finance
solutions to make it easier for hotels to improve energy productivity and lower operating
costs. This has helped fund a solar energy project at the Ayers Rock Resort near Uluru, for
example, which is expected to generate about 15% of the resort’s annual energy use. The
project is providing evidence on how on-site renewable energy is cleaner and cheaper than
alternative sources of energy for many remote businesses and consumers (Clean Energy
Finance Corporation, Australia, 2017).
Public budgets can also finance or co-finance private sustainable tourism projects
through dedicated funds, by favouring public private partnerships to share risk or by
providing tax credits. Italy, for example, introduced a tax credit system in 2015 for the
renovation of tourism accommodation establishments, with particular focus on energy
efficiency and anti-seismic measures. The tax credit covers between 30% – 65% of the cost
and from 2018 also concerns the renewal of the structures most closely related to green
tourism such as campsites and agri-tourism. With an initial budget allocation of
EUR 170 million for the period 2015-2017, the action has been renewed until 2020 with a
budget of EUR 240 million. This measure has been also accompanied by an additional tax
credit dedicated to digital technology infrastructures.
In Spain, a new eco-tax of EUR 2 per night was introduced on all overnight stays in the
Balearic Islands in 2016, including in hotels, cruise ships, holiday rentals and campsites.
The tax revenue will be used to finance investments to maintain and improve the quality
of tourism on the islands, and better manage the territorial and environmental impact,
among other things. Project proposals for financing are evaluated by the Commission for
the Promotion of Sustainable Tourism, which brings together representatives from local
governments, business associations, environmentalists and other relevant actors.
A dedicated website is being developed to provide information to visitors, tour operators
and locals on how the tax revenues raised are being used, and the different projects and
initiatives being funded.
In circumstances where public budgets are tight, public-private partnerships are a
viable instrument for financing tourism infrastructure projects, with the private sector
providing the expertise and finance and the public sector providing the underlying

conditions (stable business environment), while both share associated risks. However,
there might be an apparent conflict between promoting public private partnerships to
ensure investments that otherwise could not be realised, if countries lack of capacity to
enforce and monitor the private counterpart.
An example of a dedicated fund is New Zealand’s Tourism Infrastructure Fund, which
provides NZD 100 million in co-financing over four years for the development of tourism-
related infrastructure such as carparks, freedom camping facilities, sewerage and water
works and transport projects. The Fund supports local communities facing pressure from
tourism growth and in need of assistance – for example, areas with high visitor numbers
but small ratepayer bases. Co-funding is required, however only applicants who are
financially constrained are eligible (Ministry of Business, Innovation and Employment,
New Zealand, 2017).
In complement, as is usual in all financing projects with public funding, technical
support and capacity building are offered to ensure the success and potential scaling up of
the innovations (OECD, 2017a; OECD, 2017c; MATTM/UN Environment, 2017).
In Turkey, a joint initiative between the Ministry of Culture and Tourism and the
United Nations Development Programme to promote local economic development through
tourism includes an initiative which each year provides funding of TRY 50 000-TRY 120 000
to three projects led by local tourism actors and non-governmental organisations. The
Future is in Tourism initiative brings together public, private and civil society actors to
implement sustainable and community-based tourism projects, and provides the
guidance, tools and resources to build capacity to work together to support sustainable
tourism development. Since 2007, 13 projects have been supported. Tourism investments
to support cultural preservation, regional development and other investment priorities can
also benefit from reduced taxation.
In Italy, meanwhile, an in-kind support initiative was introduced in 2014 to encourage
the re-use of state-owned cultural heritage sites for tourism purposes. The initiative grants
concession rights free of charge to organisations or individuals willing to bear the
investment costs to transform these sites into tourism facilities. The aim is to encourage the
development of walking, cycling and other human powered itineraries along cycle paths and
historical-religious cultural routes, to grow tourism and promote regional development. The
initiative involves collaboration between the Ministry of Culture and Tourism, Ministry of
Infrastructure and the State Property Agency.
Another financing approach with potential to support sustainable investment and
business practices is the growing area of “impact investing”. Similar to public sources, private
finance instruments can have objectives beyond profitability, and seek to stimulate local
development by supporting small firms and job creation. Impact investing includes blended
finance, positive impact finance and social impact investment instruments, which provide
finance to organisations addressing environmental and social needs with the explicit
expectation of a measureable social as well as financial return. Microfinance and rewards-
based crowdfunding can be classified as impact investment instruments. These finance
solutions are best used when markets fail to allocate resources or when considerations
beyond economic efficiency prevail (e.g. equity or distributional goals).
In the United Kingdom, for example, impact investing has been used to transform a
disused office building in London into an innovative green hotel, using pre-fabricated
bedrooms made primarily from recycled materials within the existing structure to reduce

the environment impact of the hotel build process. With initial financing provided by an
impact investor, Bridges Fund Management, the hotel has subsequently introduced a
variety of sustainability features, including solar panels, LED and energy efficient lighting,
and water saving features.
Public sector support can also seek to foster the clustering of firms in a local community,
to generate the necessary volume of finance for sustainable tourism projects. Analysis of
tourism-related microfinance experiences reveals a number of policy options to boost
lending and improve outcomes of tourism development, for example. These include
programmes to bring tourism-related businesses together to borrow collectively in order to
alleviate the issue of fragmentation and low volumes that increase the cost of credit, along
with raising awareness and providing training in entrepreneurial management to maximise
the potential of loans.
This business model can be transferred to advanced economies to support sustainable
tourism investment, by aggregating groups of tourism-related entrepreneurs at the local
level (e.g. crafts producers, food suppliers, tour guides) to diminish transaction costs, for
example. Mexico has a successful experience in this area, involving the creation of a logo to
showcase that tourism businesses are registered with the public authorities, and provision of
one-day training on how to interact with tourists (OECD, 2017e).
Creating a coherent and sustainability friendly investment environment

Government actions to remove barriers to investment and financing for sustainable
tourism development imply a comprehensive approach where an enabling environment
for investment and development is at the centre of policy design, and where low-carbon,
climate resilient policies are coherently integrated. This involves designing a joined-up
policy framework for sustainable tourism investment.
Moreover, all levels of government need to be aligned, with clear targets and consistency
in the implementation, including engaging with the civil sector (Corfee-Morlot et al., 2012).
This involves coordinating the tourism-related investment actions of different policy areas,
such as innovation, transport and environment, as well as different levels of government.
More broadly, a successful policy intervention needs the continuous assessment of
rules and regulations that enforce, promote and potentially hamper sustainable tourism
activities. It also involves strengthening the capacity of public agents dealing with tourism
sustainability, and other stakeholders, to ensure that investment and financing do indeed
contribute to sustainable tourism development by, for example, integrating biodiversity
concerns into tourism policies. This extends to assessing and potentially removing
environmentally harmful subsidies and tax incentives.
Part of the policy challenge is the need to develop tourism specific knowledge, by
improving overall capacity and skills, and find ways to present tourism information
succinctly, using up-to-date facts and data as well as testimonials from successful tourism
companies (World Bank, 2013). Designing a comprehensive sustainable tourism
development plan also implies creating a management model for the integration of local
firms in tourism-related value chains.
In Australia, investment promotion and facilitation is a key pillar of the Tourism 2020
strategy, which is a whole-of-government and industry long-term strategy to build the
resilience and competitiveness of Australia’s tourism industry and grow its economic
contribution. To deliver on this vision, Australia’s tourism investment attraction strategy

has recently been complemented with a regional tourism infrastructure investment

initiative, working with state and local governments to create a conducive environment for
investment in regional Australia (Box 3.7). Tourism investment projects often require
multiple approvals from different agencies across different levels of government, because
of their location in areas of high natural amenity and their multi-use nature.
Box 3.7. Facilitating investment for tourism and regional

development in Australia
Increasing tourism investment is a key priority under the Australian Government’s
Tourism 2020 strategy, to develop the product needed to realise the overnight visitor
expenditure targets. To facilitate investment in the tourism industry, the Tourism Major
Project Facilitation service provides proponents of significant tourism investments with a
central contact person in the Australian Government. This contact helps guide proponents
through the approval processes across different levels of government. The service works in
co-operation with Federal, State and Territory government agencies to process approvals
in a streamlined and efficient manner. It saves investors time and money by streamlining
interactions with approval agencies, and helps ensure that tourism projects can access an
integrated investment facilitation service to minimise delays.
Actions include: identifying the range of approvals required (including environment and
heritage, employment, indigenous affairs); facilitation of meetings with approving agencies;
support and expertise on government programmes and processes; assisting investors to
access relevant support programmes; and brokering solutions to problems that arise while
seeking approval. Projects must meet a range of eligibility criteria, including having a capital
investment value in excess of AUD 50 million, making a significant contribution to economic
growth, exports, employment and/or infrastructure development, and being of strategic
significance to Tourism 2020. By 2017, the service was supporting six projects, expected to
generate 13 000 jobs during construction and operation.
Source: Australian Trade and Investment Commission.
Investment and finance needs to be part of a carefully planned and sequenced tourism
strategy, which orients innovation systems to advance green growth priorities. Careful
planning is also essential to mitigate adverse impacts associated with rapid tourism
growth. In order to avoid low-impact, dispersed and localised tourism investments,
tourism projects must also be part of a strategic development model, focusing efforts on
specific types of tourism and destinations.
In Iceland, there is an urgent need for investment as faster than anticipated growth in
tourism numbers has put pressure on the environment and available infrastructure. A
tourism task force bringing together public and private actors including the ministries of
tourism, finance, interior and environment and set to operate until 2020 is charged with
implementing a Road Map to deliver more sustainable tourism development.
Part of this response has included the modification of the Tourist Site Protection Fund to
focus on small, innovative projects under the management of private landowners and local
authorities. It will function alongside a new long term infrastructure plan for the protection of
larger publicly managed sites of natural, cultural and historic value, and will be complemented
by new destination management plans to support more targeted infrastructure development
better aligned with the needs of local communities. The OECD (2017d) has recommended

Iceland subject tourism infrastructure investment to rigorous cost-benefit analysis, taking into
consideration the social and environmental impacts (Box 3.8).
Box 3.8. Tourist Site Protection Fund in Iceland

Established in 2011, the Tourist Site Protection Fund provides capital aimed at ensuring
tourist safety and protecting Iceland’s natural environment. It also aims to support the
development of new attractions, to spread tourism flows more evenly throughout the
country. Innovative projects run by local authorities and land owners are targeted. Funding
is only provided to private entities when the site is open to the general public and access
is free of charge, although it is permitted to charge for parking, toilets and other services.
Changes to the legislation in 2017 means that national agencies are no longer eligible.
Grants provide funding for 80% of the total project cost, with a standard duration of one
year. In 2017, the allocated budget amounted to ISK 600 million.
Since its creation, the fund has supported a total of 750 projects. As an example, at
Goðafoss waterfalls, the grant provided the municipality with the financial means to
improve accessibility, protect the environment, enhance security, improve signage and
direct growing visitor traffic. Main outcomes include the development of a viewing
platform, a pedestrian walkway and a parking area. The Icelandic Tourist Board oversees
the management of the Fund, while the Tourist Site Protection Fund Board is made up of
representatives from the Ministry of Industries and Innovation, the Icelandic Travel
Industry Association, the Icelandic Association of Local Authorities and the Ministry of the
Environment and Natural Resources. All grants are approved by the Minister of Tourism,
Industries and Innovation, and allocations are made public.
Source: Icelandic Tourist Board and Ministry of Industries and Innovation, Iceland.
Tourism investment must also include a tangible environmental commitment in terms

of both planning and investment. Tourism development programmes must balance
investment in infrastructure with the strengthening of local tourism governance for effective
policy design and implementation. These programmes require cross cutting participation
and execution capacity in line with the type of tourism in question (IDB, 2016).
Once the policy instrument has been identified, there needs to be an evaluation of
whether there is sufficient capacity at the national and sub-national level, and in the
private and civil sector, to successfully implement the policy (OECD, 2014).
In Chile, the Foco Destino initiative intends to build capacity of local managers in order
to boost selected tourism destinations and increase their competitiveness and
sustainability, within the framework of the National Plan for the Sustainable Development
of Tourism. In a related initiative, Invest Tourism aims to attract investment to sustainable
projects in “investable” destinations. Projects are required to generate a positive impact in
the local area, taking due consideration of the conservation of natural resources and
richness of the environmental interpretation, for example (Box 3.9).
In Sweden, an initiative by the Swedish Agency for Economic and Regional Growth to
boost sustainable consumption and production highlights the benefits of a coordinated
approach driving practical actions, tailored to the needs of the five participating regions.
With a total budget of EUR 6.4 million over four years, destinations initiated activities to,
for example, develop more sustainable products and services (Box 2.2).

Box 3.9. Boosting sustainable destination development

and investment in Chile
Foco Destino programme: Designed by the Ministry of Economy, Development and Tourism
and the National Tourism Service, the programme aims to address competitiveness gaps in
local destinations and boost sustainable development. It builds capacity at local level by
assigning destination managers with at least seven years’ experience to coordinate tourism
policies in each destination, connect private and public actors, and design and implement
site-specific promotion strategies. Thirty tourism projects in seven destinations were funded
in 2016-2017, with a total of USD 6 million mobilised. Experience indicates that replicating
the programme in different destinations is more effective when: the approach is adapted
and managers selected to reflect the specific destination; interventions last at least
12 months, with on-going monitoring and coordination; projects are jointly prepared by
industry professionals, consultants and technical agencies; and strategic private and public
actors are involved.
Invest Tourism: The Invest Tourism initiative was launched in 2016 to diversify the
tourism offer and stimulate economic activity and income generation in regional areas. A
Map of Opportunities for Tourism Investment outlines 27 “investable” destinations where
sustainable projects can be implemented. In total, USD 32 million investment is targeted,
with projects ranging from USD 70 000 to USD 5 million. From an environmental
standpoint, the projects must generate a positive impact in the surrounding area, taking
into account the choice of location, conservation of materials and natural resources,
quality of the tourism experience, and richness of the environmental interpretation.
Source: UNWTO, www.invierteturismo.cl.
As with all policy, there is also a need to evaluate the effectiveness of measures
implemented to boost sustainable tourism investment and assess if the desired outcomes
are achieved.
In Costa Rica, a Social Progress Index is being used under the National Tourism Plan to
better evaluate the impact of investment and tourism growth on well-being at destination
level. This innovative initiative is composed of environmental and social indicators and
takes into account destination specifics including the nature of tourism, level of tourism
development, and other factors influencing the sustainable development of tourism. The
results can be used to assess the impact of economic growth and investment on well-being,
and the impact of tourism development on destinations and local communities (Box 1.22).
Encouraging sustainable and responsible business practices

Private investment is essential to deliver sustainable and inclusive tourism growth. Most
private investment is undertaken by domestic firms, but international investment can
provide additional advantages (e.g. technology transfer, local supplier linkages, access to
global markets), and countries are increasingly looking to foreign investors to provide the
capital needed to develop tourism. Policies need to consider how to attract international and
domestic tourism investors, and mobilise this investment in a sustainable manner.
Attracting private tourism investment has become a highly competitive business in
many countries, and can be supported by ensuring rule of law, offering advisory services
and facilitating market entry and exit (OECD, 2015a). Many countries have very active
tourism investment attraction and facilitation programmes, as illustrated by the Australia

example above. Indeed, some countries leverage their eco-credentials to attract tourism
investment. VisitFinland, for example, highlights the unique, clean and unspoilt nature
with high sustainability standards to differentiate Finland as a unique tourism investment
location, targeting green investors.
These facilitation and promotion policies not only seek to leverage private sector
participation, but also have a role to play in mainstreaming responsible conduct among
stakeholders, as well as enhancing and more widely spreading the benefits of tourism.
Incorporating environmental and social criteria into these policies and programmes can
nudge tourism businesses towards more sustainable tourism investment activities.
Investment in sustainable tourism development entails financial contributions from
the private sector; the nature of the investment financed and the manner in which tourism
businesses operate is also relevant. Responsible business conduct involves a commitment
to sustainable development, transparency and accountability in business practices,
accepting responsibility to avoid harm even if it is not prohibited (moving from “do no
harm” to “do good”), and working in partnership with government to maximise the joint
benefits of investment (UNCTAD, 2014; OECD, 2015a).
Part of the enabling policy measures imply devising ways to disseminate information
to investors more effectively, through a mixture of existing and customised instruments,
such as websites, detailed sector profiles, and tailored presentations. Suitable policy
actions include developing a network of partners to enhance service delivery (World Bank,
2013). Policy options can also enhance the value creation of foreign direct investments: for
example, by increasing linkage prospects with local firms by stipulating the use of local
inputs and supporting local firms with finance and non-finance products in order to be
able to reach international standards (UNCTAD, 2007).
In Germany, several public initiatives involving co-participation from the private sector
in policy design are in place to harness the transition towards energy efficient sources in
hotel and restaurant businesses, including initiatives to raise awareness and gather evidence
on the business case for more responsible and sustainable business practices, including
investment.
The Federal Ministry for Economic Affairs and Energy, for example, is conducting a pilot
project on energy-efficient buildings in co-operation with the German Energy Agency. As
part of this effort, the Check-in Energy Efficiency project was launched in 2015 to showcase
the economic and social benefits of transitioning towards energy-efficiency sources. This
project requires hotels to implement at least one investment that will generate bottom-line
energy savings of at least 30% to 50% for heating and electricity – as compared with energy
consumption prior to the investment. The 30 participating hotels are given expert energy-
efficiency advice to enable them to utilise the efficiency potential available and profit from
an increase in subsidies.
In another initiative the German Government is building on the experience of the
German Hotel and Restaurant Association’s energy and climate mitigation campaign to
encourage more sustainable business practices, demonstrating how private strategies can
also help address the investment gap (Box 3.10).
In France, the Chamber of Commerce and Industry encourages members to adopt a
more responsible approach to the environment, and has identified as challenges for
sustainable tourism financing the high costs and low profitability associated with “going
green”. To address this, a series of actions have been developed, including the certification of

Box 3.10. Hotel and Restaurant Association’s energy

and climate mitigation campaign in Germany
The German Hotel and Restaurant Association, DEHOGA, has an energy and climate
mitigation awareness campaign focused on energy efficiency, regional procurement and
sustainable mobility. The campaign provides information to hotels and restaurants through
a variety of channels, including guidance, on-site consulting, networks and workshops. It is
highlighted in the National Action Plan on Energy Efficiency as a good example of an
industry-based approach to energy efficiency awareness and sensitivity. The German
Government decided to build on the DEHOGA experience during its presidency of the Alpine
Convention 2014-2016. Several initiatives were launched, including organising workshops
with experts, unions and hotel owners. An online tool in four Alpine languages was
developed, along with a practical guide to energy management. The intention is to offer
hotels the possibility to engage in systemic energy saving, thus reducing costs and the
emission of harmful greenhouse gases. A contest, ClimaHost, is planned to highlight good
practices and raise awareness of climate mitigation and adaptation issues.
Source: Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, Germany.
sustainability in tourism products. The Chamber has also created a dedicated website with a
customised search tool that identifies the main programmes and funding options available
to tourism businesses, depending on the category and location of the business, the nature of
project proposed (e.g. pollution reduction, recycling and waste management, awareness
campaign), and the type of support sought (e.g. grants, subsidies, loans, guarantees). This
includes instruments easing finance for building renovations, investments in modernisation
and support for labelling.
In Iceland, the Icelandic Centre for Corporate Social Responsibility and the Icelandic
Tourism Cluster, through its activities to promote investment and responsible tourism, also
support tourism SMEs to adopt more sustainable practices: demonstrating exemplary
behaviour and respect for nature; ensuring the safety and a courteous treatment of guests;
respecting the rights of employees, and having a positive impact on the local community.
Recent policy measures to promote more sustainable consumption and production
patterns use levers closest to the negative outcome. One example is through putting a price
on carbon by taxing polluting emissions rather than the use of fossil fuels as inputs (OECD,
2011). Possible government actions towards easing the transition to cleaner products and
production processes include allocating incentives to R&D focused on the substitution of
dirty inputs for cleaner ones (i.e. green performers), and promoting a shift to consumption
patterns with lower environmental footprint (i.e. the green economy), and increased
re-use, repair and recycling patterns (OECD, 2011).
One possible way forward in the tourism sector would be to devise policy options
linking sustainable tourism development and the circular economy, to support more
sustainable tourism consumption and production patterns. The circular economy is a
concept that covers the entire cycle, from production to consumption, and advocates a
“reduce, re-use, recycle” approach to increase environmental benefits.
The European Union, for example, has devised a Plan for Action on the Circular
Economy that includes economic incentives for producers to put greener products on the
market, and support recovery and recycling schemes. While tourism is not currently a
target sector in this initiative, it can benefit from many of the policy recommendations.

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PART II
OECD country profiles

II. OECD COUNTRY PROFILES – AUSTRALIA
Australia
Tourism in the economy

Australia is experiencing a strong surge in both international and domestic visits,
generating a positive climate for tourism investment. Much of this growth has been
spurred on by a lower exchange rate, increasingly competitive airfares and the growing
Asian middle class, enhancing Australia’s price competitiveness as a tourism destination
for international travel, while reducing that of overseas travel by Australians.
In 2016, there were 90.7 million overnight domestic trips by Australians, up 3.7% on
2015, while international visitor arrivals reached a record 8.3 million, up 11% on 2015. This
calendar year growth in arrivals was the highest in two decades, a period which included
the pinnacle international event, the 2000 Olympic Games in Sydney.
Increased volumes were reflected in solid expenditure growth in 2016, with international
visitor expenditure up 6.8% to AUD 39.1 billion, domestic overnight expenditure up 6.0% to
AUD 61.0 billion and domestic same day expenditure up 6.8% to AUD 19.8 billion. Expenditure
by Chinese visitors, now Australia’s leading market by value, rose 11% to AUD 9.2 billion in
2016. Other large markets showing strong growth included Japan (up 29%), South Korea (up 17%),
India (up 9%), Germany (up 8%) and the United States (up 7%).
Reasons for travel show a mixed picture. Leisure travel expenditure was up 7.4% and
education related travel up 12.0%, while travel for business and employment purposes
increased by only 2.3%, substantially below its long term average rate of growth.
In 2015-16, the direct effects of tourism accounted for a 3.2% share of GDP. Tourism’s
contribution to GDP increased by 7.4% on 2014-2015, to AUD 53 billion, significantly faster
than the overall growth in GDP. Tourism is also gaining an increasing share of exports, from
9.5% in 2014-15 to 11% in 2015-16.
The economic benefits of tourism are widespread, with an estimated 43% of all tourism
expenditure occurring outside Australian capital cities and the Gold Coast in year ending
June 2017.
Tourism governance and funding

The Australian Trade and Investment Commission (Austrade) works closely with
Tourism Australia (TA) and the Department of Foreign Affairs and Trade (DFAT) to
coordinate the delivery of “whole-of-government” tourism objectives. Austrade is
responsible for tourism policy, projects, programs and research. Within Austrade, Tourism
Research Australia (TRA) provides international and domestic tourism intelligence. Formed
under the Tourism Australia Act 2004, TA is the Australian Government agency responsible
for attracting international visitors to Australia for leisure and business events. DFAT
works to strengthen bilateral tourism relationships with key tourism markets. All state and

territory governments in Australia incorporate tourism into relevant areas of portfolio

responsibility to ensure effective tourism promotion and industry development.
Australia: Organisational chart of tourism bodies
Minister for Trade, Tourism and Investment Tourism Ministers Meeting

State and Territory Ministers
Assistant Minister for Trade, Tourism (supported by the Australian Standing
for Tourism
and Investment Committee on Tourism)
Australian Trade and

Department of Foreign State and Territory Tourism
Tourism Australia Investment Industry bodies
Affairs and Trade Organisations
Commission
Industry
Source: OECD, adapted from the Australian Government, 2018.
Tourism Ministers’ Meetings (TMM) bring together tourism ministers from the
Australian, state and territory governments to discuss tourism policy matters of mutual
interest and has collective responsibility for implementing the national tourism strategy,
Tourism 2020. TMM is supported by the Australian Standing Committee on Tourism
(ASCOT), chaired by Austrade, with representatives from TA, DFAT and each state and
territory tourism organisation. Tourism industry bodies are invited to attend ASCOT and
TMM meetings as required.
In 2016-17, TA was provided with AUD 156.8 million for tourism and area promotion,
comprising AUD 140.3 million for international marketing, AUD 14 million for Asia
marketing and AUD 2.5 million for Working Holiday Maker marketing. In addition,
AUD 10.4 million was allocated to the Tourism Demand-Driver Infrastructure programme.
Other additional resource allocations include AUD 4 million to the Queensland Tourism
Tropical Cyclone Debbie Recovery Package, AUD 5 million to the Tasmanian Tourism Growth
Package and AUD 2.6 million to the Approved Destination Status Scheme to provide tour
quality monitoring arrangements that underpin the Chinese inbound tourism market.
Tourism policies and programmes

Australia’s Tourism 2020 Strategy has guided the tourism industry through a period of
impressive growth in visitation and expenditure. Nonetheless, the industry faces a range of
challenges to ensure that this pace of growth can continue in a sustainable way. Key
challenges include:
● Maintaining an adequate supply of labour and skills,
● Securing a greater share of high yielding tourists and a higher rate of repeat visitation,
● Targeting investment to improve the diversity, quality, and spread of accommodation
and attractions,
● Expanding air routes and agreements, and developing supporting infrastructure,
● Increasing dispersal of visitors into the regions,
● Facilitating increased visitation by reducing regulation and streamlining visa processes.

Tourism infrastructure remains one of the Australian Government’s five investment

priorities. This has been assisted by a structured set of investment incentives and assistance.
Stimulating tourism investment in Australia.

A review of the five-year tourism investment attraction partnership between Tourism
Australia and Austrade found that it has delivered strong international interest in tourism
assets, including investment in Australian tourism accommodation. Now in its second
phase, the partnership is focusing on encouraging investment into regional tourism
destinations.
Specific initiatives to support tourism investment include:
● A whole of government commitment to attracting investment into the sector.
● A Tourism Major Project Facilitation service, which assists selected significant tourism
infrastructure projects to navigate approvals processes as well as provide information
and pursue solutions to investment barriers (Box 3.7).
● A Tourism Senior Investment Specialist, who works with states and territories to bring
strategically important investment opportunities to fruition and to promote
reinvestment by major investors.
● A Tourism Demand-Driver Infrastructure program, which funds delivery of
infrastructure projects that support the priorities of state and territory governments.
The program increases the availability of quality tourism products and experiences and
bolsters the services that underpin them, particularly in regional areas.
Within the framework of the Tourism 2020 Strategy, the Australian Government is
pursuing a range of policy responses.
Tourism accounted for approximately one in 13 workers in Australia in 2015-16.
Through the Tourism and Hospitality Labour and Skills Roundtable, the Government works
with industry to address sector priorities, including career perceptions and vocational
education and training.
As a long-haul destination, aviation plays a major role in transporting international
visitors to and from Australia. The Australian Government’s approach is to continue to
liberalise the international aviation market, supporting entry of Australian airlines into
foreign markets and negotiating arrangements that remove barriers and ensure that
aviation capacity can meet future demand.
As numbers continue to grow, efficient and secure traveller facilitation through
international borders has become increasingly important. The Australian Government has
recently completed implementation of an automated departure process at all eight major
international airports, enabling processing of up to 150 people per hour per gate. The
Outgoing Passenger card has also been removed, simplifying and speeding up processing
at the border. More specific facilitation measures for key source markets include, trialling
a 10 year multiple entry visitor visa for eligible Chinese nationals and three year multiple
entry visas for nationals from India, Thailand, Viet Nam and Chile; online lodgement for
applicants from China and India; and trialling a user-pays fast-track processing option in
China, India and the United Arab Emirates. China is recognised as an important driver of
tourism growth and 2017 was designated as the China-Australia Year of Tourism (Box 1.15).

Statistical profile
Table 1. Australia: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
TOURISM FLOWS, THOUSAND
Domestic tourism
Total domestic trips 248 377 240 118 260 362 269 482 280 324
Overnight visitors (tourists) 74 472 75 796 84 481 87 523 90 742
Same-day visitors (excursionists) 173 905 164 322 175 881 181 958 189 583
Nights in all types of accommodation 281 733 282 680 310 533 317 535 334 798
Hotels and similar establishments .. .. .. .. ..
Specialised establishments .. .. .. .. ..
Other collective establishments .. .. .. .. ..
Private accommodation .. .. .. .. ..
Inbound tourism
Total international arrivals 6 167 6 482 6 922 7 450 8 269
Overnight visitors (tourists) .. .. .. .. ..
Same-day visitors (excursionists) .. .. .. .. ..
Top markets
New Zealand 1 193 1 201 1 245 1 312 1 345
China 628 721 851 1 032 1 208
United Kingdom 626 668 657 688 716
United States 501 516 562 619 717
Singapore 287 333 363 387 430
Nights in all types of accommodation .. .. .. .. ..
Outbound tourism
Total international departures 8 206 8 710 9 139 9 421 9 970
Top destinations
New Zealand 1 107 1 162 1 192 1 256 1 343
Indonesia 915 951 1 089 1 094 1 242
United States 879 972 974 1 031 1 083
United Kingdom 520 563 564 600 586
Thailand 626 627 580 569 548
TOURISM RECEIPTS AND EXPENDITURE, MILLION AUD
Inbound tourism
Total international receipts 32 951 34 010 37 287 41 066 46 359
International travel receipts 30 464 31 670 34 880 38 431 43 616
International passenger transport receipts 2 487 2 340 2 407 2 635 2 743
Outbound tourism
Total international expenditure 34 012 36 490 35 964 38 124 40 067
International travel expenditure 27 111 29 651 29 818 31 627 33 516
International passenger transport expenditure 6 901 6 839 6 146 6 497 6 551
.. Not available
1 2 http://dx.doi.org/10.1787/888933639531

Table 2. Australia: Enterprises and employment in tourism

Number of
Number of persons employed
establishments1
2014 2012 2013 2014 2015 2016
Total .. 553 000 552 000 573 400 580 200 ..
Tourism industries 273 536 530 000 528 700 549 800 556 300 ..
Accommodation services for visitors 12 967 78 500 78 700 83 800 82 800 ..
Hotels and similar establishments .. .. .. .. .. ..
Food and beverage serving industry 74 586 182 200 176 500 189 000 194 300 ..
Passenger transport 22 044 61 000 62 700 61 200 60 700 ..
Air passenger transport 4 453 38 900 39 800 38 000 36 600 ..
Railways passenger transport 79 2 800 2 800 2 400 2 700 ..
Road passenger transport 17 512 19 300 20 100 20 800 21 400 ..
Water passenger transport .. .. .. .. .. ..
Passenger transport supporting services .. .. .. .. .. ..
Transport equipment rental .. .. .. .. .. ..
Travel agencies and other reservation services
5 406 38 200 38 600 41 100 39 000 ..
industry
Cultural industry 13 953 10 200 10 700 11 100 10 700 ..
Sports and recreation industry 12 192 19 200 19 900 20 900 21 300 ..
Retail trade of country-specific tourism
132 388 97 500 98 300 98 800 102 200 ..
characteristic goods
Other country-specific tourism industries .. 43 200 43 200 44 100 45 300 ..
Other industries .. 23 000 23 300 23 500 23 900 ..
.. Not available
1. Data refer to number of enterprises.
1 2 http://dx.doi.org/10.1787/888933639550
Table 3. Australia: Internal tourism consumption

Million AUD
2015
Domestic tourism expenditure Inbound tourism expenditure Internal tourism consumption
Total .. .. ..
Consumption products 95 671 34 220 129 891
Tourism characteristic products 59 076 18 407 77 483
Accommodation services for visitors 14 292 6 034 20 326
Food and beverage serving services 16 718 4 035 20 753
Passenger transport services 17 302 6 519 23 821
Air passenger transport services .. .. ..
Railways passenger transport services .. .. ..
Road passenger transport services .. .. ..
Water passenger transport services .. .. ..
Passenger transport supporting services .. .. ..
Transport equipment rental services 1 382 474 1 856
4 355 344 4 699
industry
Cultural services .. .. ..
Sports and recreation services 5 027 1 001 6 028
Country-specific tourism characteristic goods .. .. ..
Country-specific tourism characteristic services .. .. ..
Other consumption products 36 595 15 813 52 408
Tourism connected products 34 647 14 606 49 253
Non-tourism related consumption products 1 948 1 207 3 155
Non-consumption products .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933639569

II. OECD COUNTRY PROFILES – AUSTRIA
Austria

According to the latest results of the Austrian Tourism Satellite Account (TSA), the
direct value-added effects of tourism in 2016 totalled EUR 19.7 billion (without business
trips) or 5.6% of GDP. Based on the TSA, about 293 100 full-time job equivalents could be
directly attributed to tourism related industries in 2015, contributing 7.9% of overall
employment in Austria.
In 2016, the number of international tourist arrivals in all accommodation
establishments (commercial and private) was 28.1 million (up 5.2% over 2015) and the number
of bednights amounted to 102.9 million. The fastest-growing source markets compared with
2015 were Asian countries such as India (up 24.6% arrivals) and South East Asian countries
(up 18.9%). Arrivals from the Middle East declined. Germany, the most important market for
Austria, increased by 7.0% to 13.0 million arrivals; the Netherlands and Switzerland – the
second and third most important markets – showed increases of 7.4% and 3.3% respectively.
In 2016, international receipts exceeded international expenditure by approximately
EUR 8.8 billion, up EUR 632 million from 2015. In total, the income from inbound travel was
EUR 17.4 billion i.e. up EUR 1 billion compared to 2015.
In 2016, domestic tourist arrivals in paid accommodation totalled 13.3 million (up 5.1%)
with 38 million bednights registered (up 4.4%). Record highs were registered during both
the winter (November 2016 to April 2017) and summer seasons (May to October 2016), with
5.6 million and 7.8 million arrivals respectively.

According to the Austrian Federal Constitution, the nine Länder (federal states) have
legislative and executive responsibility for tourism affairs. However, as tourism is a cross-
cutting sector, both federal and European laws apply.
At the national level, from January 2018 on, tourism policy is the responsibility of the
Federal Ministry of Sustainability and Tourism. The new government programme in
particular focuses on better framework conditions and business environment and on the
positioning of Austria as a competitive tourism destination. This includes the reduction of
financial and administrative burden for the small structured tourism industry, measures
against the shortage of qualified labour, and the development and implementation of an
overall national tourism strategy. This strategic approach will also include other important
issues such as the strengthening of the national brand, the internationalisation of markets,
financing of enterprises/SMEs, digitalisation, innovation and year-round tourism. Synergies
between the national and regional level continue to be strengthened in particular with
regard to tourism promotion.

The Austrian National Tourist Office (ANTO) is the country’s national tourism marketing
organisation. It is funded by the Ministry (75%) and the Austrian Federal Economic Chamber
(25%). ANTO co-operates closely with the Austrian tourism trade e.g. tourist boards of the
Länder and tourism businesses. The core responsibilities of ANTO are market research, brand
management, marketing, tourism networking, and information provision.
Austria: Organisational chart of the tourism bodies
Parliamentary Committee Federal Ministry of Governments of the nine

for Tourism Sustainability and Tourism Länder administrations
Department for Tourism
National Tourism International

Tourism Service Tourism Funding
Policy Tourism Affairs
Austrian National Tourist Office

Social Partners Tourism Associations (ANTO)
Austrian Bank for Tourism

Association of Austrian Development
Austrian Federal Economic Hoteliers
Chamber
Austrian Federal Chamber of Association of Austrian travel

Austrian Economics Service
Labour agencies and tour operators
(AustriaWirtschaftsservice)
Others
Source: OECD, adapted from the Federal Ministry of Sustainability and Tourism, 2018.
In 2016, the national tourism administration dispensed a budget of about EUR 52 million.
Of this total, EUR 22.2 million were dedicated to the financial support of SMEs and
administered by the Austrian Bank for Tourism Development. EUR 24.1 million were directed
to the annual budget of ANTO and EUR 5.5 million were disbursed by the Ministry in the form
of individual subsidies for co-financing tourism projects and service contracts. Also,
EUR 77.8 million in European Recovery Programme funds were made available for loans to
SMEs in the tourism industry. In addition to the national budget, all nine Länder have their
own tourism budgets to support their specific tourism development programmes.

Key issues and challenges for Austria include the need to: Diversify core markets;
co-ordinate marketing efforts; encourage investment and innovation; combat seasonality;
improve accessibility and connectivity; address employment and labour market issues;
coordinate the administrative and regulatory environment; and consider sustainable
development and digital transformation.
Strategic initiatives at the national level seek to address these issues:
● Marketing. ANTO and the nine tourism marketing organisations of the Länder are seeking
to work more efficiently in terms of branding, marketing, IT, research and communication.
● Investment, quality and innovation. There is continued support for the Austrian Bank for
Tourism Development which handles SME funding programmes including the provision
of favourable loans and encouraging quality, innovation and new business start-ups. For

example, the Innovationsmillion subsidy supports innovative flagship tourism projects

based on stakeholder co-operation at the destination level and for which the Ministry,
together with the European Union, provides EUR 1 million per year. The bi-annual
award, Österreichischer Innovationspreis Tourismus, is awarded in co-operation with the
Länder to innovative best practices with a specific focus e.g. tourism and water, tourism
and mobility with financial support for the winner. Additionally, the Ministry launched
several initiatives in 2016 and 2017 to encourage tourism businesses to invest, including
in rural areas. In the frameworks of various investment growth bonus programs,
subsidies will be dedicated to tourism investment projects.
● Employment, education and training. Employment is an issue of high importance.
Education and training have been identified as crucial for the success of Austrian
tourism. The Ministry together with its partners has launched a number of initiatives to
increase the attractiveness of jobs in tourism and to satisfy the high demand for skilled
employees. These initiatives include career guidance at schools (for teachers, pupils and
parents) a variety of offers to support apprenticeship training (trainees and trainers/
enterprises) in relevant applications, as well as competitions for trainees and awards to
recognise enterprises for their achievements in employee development etc.
● Connectivity and transport. In order to deal with the challenges that the tourism sector
is facing in terms of mobility e.g. more short term trips and capacity restrictions,
particularly in sensitive areas such as the Alps, the Ministries responsible for tourism,
the environment and transport have taken various initiatives including conferences and
workshops and produced publications for stakeholders. The annual networking
conference, Tourism Mobility Day, which was organized for the first time in 2014 went
international in 2017. It reviewed the needs and challenges of tourism mobility and the
importance of cooperation between tourism, transport and environment agencies with a
view to creating mobility solutions to and within tourism destinations that are customer
friendly, simple, affordable and sustainable. In May 2016 a destination manual for
sustainable mobility was published.
● Accessibility. The Ministry supports the tourism industry with appropriate information
e.g. a handbook to inform tourism enterprises about the legal framework and relevant
construction standards, brochures on how to create natural and cultural offers,
customer care and other relevant technical information.
● Climate change. The Ministry has undertaken various initiatives e.g. promotion of
sustainable, year-round quality-tourism, associated research, knowledge transfer and
awareness-raising on climate change and promotion of energy efficiency and
sustainable mobility in tourism.
● Tourism and the SDGs. In January 2017, the start of the International Year of Sustainable
Tourism for Development, the Ministry launched online information on how Austrian
tourism can help to achieve the SDGs. It includes comprehensive information on the
17 goals, with practical examples and expert statements, and was supported by a number
of related events.
● Crowdfunding. The Alternative Financing Act came into effect in September 2015. It laid
the foundation for alternative forms of financing, including crowdfunding, supporting
the interaction of different financing components within one overall funding concept.
Consequently, in September 2016, the crowdfunding platform “we4tourism” was

established in order to further broaden options for tourism businesses to access

financing.
● Digitalisation. The Ministry together with the Austrian NTO and the Federal Economic
Chamber has launched a digitalisation strategy for Austrian tourism in September 2017
(Box 1.13).
Statistical profile
Table 1. Austria: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips .. .. .. .. ..
Hotels and similar establishments 23 762 23 635 23 482 23 941 24 841
Other collective establishments 8 621 8 619 8 860 9 122 9 718
Private accommodation 3 582 3 501 3 326 3 362 3 455
Inbound tourism
Total international arrivals .. .. .. .. ..
Top markets
Germany 11 412 11 758 11 750 12 141 12 986
Netherlands 1 715 1 674 1 672 1 735 1 863
Switzerland and Liechtenstein 1 276 1 282 1 310 1 400 1 446
Italy 1 060 1 024 1 051 1 123 1 102
United Kingdom 741 774 803 876 920
Outbound tourism
Total international departures .. .. .. .. ..
Top destinations
Germany 2 369 2 330 2 347 2 297 2 324
Italy 2 083 1 932 2 033 1 971 2 178
Croatia 1 125 985 1 085 965 1 416
Spain 571 487 569 586 628
Greece 263 387 380 352 369
TOURISM RECEIPTS AND EXPENDITURE, MILLION EUR
Inbound tourism
Total international receipts 16 661 17 127 17 447 18 353 18 984 p
International travel receipts 14 706 15 237 15 676 16 421 17 436 p
Outbound tourism
Total international expenditure 9 660 9 620 10 028 10 017 10 309 p
International travel expenditure 7 821 7 737 8 149 8 205 8 588 p
.. Not available; p Provisional data
1 2 http://dx.doi.org/10.1787/888933639588

Table 2. Austria: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 78 590 262 036 270 486 .. 293 099 ..
Accommodation services for visitors .. .. .. .. .. ..
Hotels and similar establishments 16 296 61 683 63 753 .. 66 087 ..
Food and beverage serving industry 31 180 95 260 99 142 .. 106 502 ..
Passenger transport 12 479 52 613 53 261 .. 53 832 ..
Air passenger transport 176 3 820 4 524 .. 4 888 ..
Railways passenger transport 28 6 703 6 590 .. 5 928 ..
Road passenger transport 12 176 42 054 42 113 .. 42 967 ..
Water passenger transport 99 36 34 .. 49 ..
Passenger transport supporting services .. 757 752 .. .. ..
Transport equipment rental 2 544 .. .. .. 267 ..
2 466 31 613 32 843 .. 43 419 ..
industry
Cultural industry 9 352 12 790 13 397 .. 14 472 ..
Sports and recreation industry 4 273 7 319 7 338 .. 8 520 ..
.. .. .. .. .. ..
Other country-specific tourism industries .. .. .. .. .. ..
Other industries .. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933639607
Table 3. Austria: Internal tourism consumption

Million EUR
2015
Total 15 158 18 310 34 685
Air passenger transport services 2 076 1 585 3 661
Railways passenger transport services 775 294 1 069
Road passenger transport services 580 14 594
Water passenger transport services 28 9 37
Transport equipment rental services 230 5 235
9 0 9
industry
Cultural services 978 707 1 685
Sports and recreation services 372 1 032 1 403
Tourism connected products .. .. ..
Non-tourism related consumption products .. .. ..
Non-consumption products 40 344 384
.. Not available
1 2 http://dx.doi.org/10.1787/888933639626

II. OECD COUNTRY PROFILES – BELGIUM
Belgium

In Belgium, tourism is an exclusive competency of the three regions: Flanders, Wallonia
and Brussels. This section provides a national overview of tourism in the country, as does the
statistical annex, followed by presentations of the governance and policy initiatives of the
Flanders Region and Wallonia.
In 2016, Belgium received 5.6 million international tourists who stayed in hotels and
similar establishments, spending a total of 10.2 million nights. Of this figure 49.2%
(2.7 million) visited Flanders, 37.8% (2.1 million) the city of Brussels and 13% (720 000)
Wallonia. The leading foreign markets for Belgium are the Netherlands, France, the
United Kingdom, and Germany, together accounting for 57% of arrivals.
Belgium domestic overnight visitors totalled 4.3 million in 2016, of whom 59.9% visited
Flanders, 25.5% Wallonia and 14.7% Brussels. A total of 7 million nights were spent in hotels
and similar establishments, with Flanders again accounting for around 60% of the total.
Outbound overnight trips from Belgium increased by 26.2% to 15.8 million in 2016. Of
these trips, 58.7% originated in Flanders, 26.8% in Wallonia and 14.6% in Brussels.
In 2016, international travel receipts amounted to EUR 10.7 billion or 2.6% of total
exports for Belgium.
FLANDERS REGION

In Flanders, tourism is the responsibility of the Minister for Public Works, Mobility, the
Vlaamse Rand, Tourism and Animal Protection.
The tourism unit of the Flemish Department of Foreign Affairs is responsible for
tourism policy, international tourism relations.
VisitFlanders has the following objectives and functions:
● Investing in the sustainable development and promotion of Flanders and Brussels as a
top tourist destination,
● Making specific investments and supplying support to make the Flanders tourism offer
more attractive,
● Promoting Flanders as a tourist destination to attract more visitors,
● Making sure that everyone can enjoy and participate in a holiday, including people with
disabilities or limited economic means, linking accessibility and quality,

● Stimulating professionalism in the tourist sector in order to guarantee all visitors a

quality offer and experience,
● Recognition of tourism accommodation providers.
The provinces and local authorities invest in the domestic promotion of Flanders.
Close co-operation between VisitFlanders and the main actors of the private sector
(Horeca Vlaanderen, Brussels Airport, Recread, CiB, Logeren Vlaanderen, rail authority NMBS) is
realised via the Advisory Committee of VisitFlanders and in the “Tourism Pact 2020”, which
is subscribed to by the most relevant public and private tourism stakeholders in Flanders.
In 2017 the overall budget for VisitFlanders was EUR 68.1 million.
Belgium, Flanders region: Organisational chart of tourism bodies
Flemish Minister for Public Works, Mobility, the Vlaamse

Rand, Tourism and Animal Protection
Flemish Department of Foreign Affairs

VisitFlanders
(Vlaams Departement Buitenlandse Zaken)
Marketing Office
¾ Project Funding
¾ Quality Management Coordination Division
¾ Product Management (Policy)
¾ Product Management (Inclusive Tourism)
Operating Office Diplomatic Network Division

¾ Business Development
¾ Content
¾ Focus Markets
Global Challenges Division
¾ Future Markets
¾ Offices Abroad
and Strategic Goods Division
Information Office
¾ Holiday Participation Centre
Source: OECD, adapted from the Flemish Department of Foreign Affairs, 2018.

Tourism policy in Flanders has three overall priorities:
● Increase the attractiveness and promote Flanders as a destination. The approach is to
focus on distinctive features of Flanders, including treasures such as The Flemish
Masters and local gastronomy. Individual destinations, including the Brussels region, are
supported through investment in promotion, events, infrastructure and accessibility.
● Support businesses and a vibrant tourism sector. Priorities include: a streamlined quality
policy, addressing competitiveness in the accommodation sector and implementing a
hotel and catering industry policy plan; product development such as cycling and
walking networks; and financial support provided by the Government. Since 2013,
specific attention has been given to tourism as a main driver of economic growth for the
province of Limburg, with public support provided for tourism projects such as those
creating value from coal mining heritage.
● Make tourism available to all Flemings. This includes work in three areas: making Flanders
a leading family-friendly heritage destination; expanding the Holiday Participation

Centre (Steunpunt Vakantieparticipatie) as a leading reference point for people with

budgetary and care needs; and providing a range of high quality accommodation for a
range of disadvantaged groups.
Specific measures designed to address challenges facing the tourism industry in Flanders
include:
● Development and promotion of themes within the Flanders brand, such as gastronomy,
Flanders’ Masters, and commemoration of World War I,
● Renewal of the “Tourism for All” Act,
● Implementation of a new “Tourism Accommodation” Act, with the Hotelstars Union
quality label,
● Development and implementation of “Event Flanders”,
● Continuous investment in research with an update of the Flanders Tourism Satellite
Account,
● Continued delivery of the KOALA-project, supporting tourism businesses in initiatives in
the area of climate care and energy efficiency,
● Developing professional qualifications in close co-operation with private public tourism
stakeholders and the Flanders Department of Education.
WALLONIA

In Wallonia, tourism is the responsibility of the Minister of Agriculture, Nature,
Rurality, Tourism, Heritage and Delegate to the Greater Region.
The Tourism Department of Wallonia is composed of the Walloon Ministry of tourism
(CGT) and Wallonia-Belgium Tourism (WBT).
The CGT is responsible for Walloon tourism policy and international tourism relations,
including:
● Handling applications for certification and labelling (tourism accommodation and
attractions, tourist information and guides), stimulating professionalism in the tourist
sector in order to guarantee all visitors a quality offer and experience,
● Providing subsidies to make the Walloon tourism offer more attractive,
● Being responsible for monitoring and statistical analysis,
● Managing publicly owned tourism infrastructure in Wallonia.
Since the Sixth State reform, which came into force in 2017 and introduced
regionalisation of tourism, promotional activities were placed under the exclusive control
of Wallonia-Belgium Tourism (WBT).
The CGT and WBT work closely together with professional organisations in the sector –
such as Gîtes de Wallonie, Accueil Champêtre en Wallonie, Walcamp (camping sites), Vilvac
(holiday villages), Auberges de Jeunesse (youth hostels), Attractions et Tourisme, Musées et
Société en Wallonie, and Horeca Wallonie – to develop creative and innovative tourism policies
to meet the needs of industry stakeholders.
The Centre for Tourism Engineering of Wallonia (CITW) is a joint economic and
tourism undertaking between Walloon municipalities active in the sector. In liaison with

the CGT and with support from European Regional Development Funding, it organises and
implements tourism engineering policies that pool responsibilities and coordinate actions
across Wallonia, as well as supervising research carried out by specialist consultants.
Immowal has recently been established as a public limited company whose sole
shareholder is the CGT. It was set up in order to support economic activity and
competitiveness of Wallonia’s tourism industry. It is charged with developing two or three
new ‘tourist resorts’ in Wallonia by converting government property or, if necessary, by
purchasing the required sites in strategic locations; and restructuring the CGT’s property
portfolio in order to free up resources or provide additional revenue for new tourism projects.
Immowal collaborates actively with the CITW.
The CGT budget for 2017 amounts to around EUR 63 million, not including funding for
projects co-financed by the EU.
Belgium, Wallonia: Organisational chart of tourism bodies
Minister of Agriculture, Nature,

Rurality, Tourism, Heritage
and Delegate to the Greater
Region
Wallonia – Belgium Tourism Centre for Tourism IMMOWAL

Ministry of Tourism
(Promotion) Engineering of Wallonia S.A.
(Touristic policy and regulation)
Tourism Inspection
Tourism Attractions Tourism
and Tourism Organisation Tourism Strategy International
and Infrastructure Accommodation
FEDER Coordination Division Division Relations Division
Division Division
Services
Source: OECD, adapted from the General Tourism Commission of Wallonia, 2018.

The Regional Policy Declaration for 2014-2019 recommended focusing on two tourism
objectives:
● Creating an outstanding tourist destination. The approach involves building on the region’s
key strengths, including natural and heritage sites, gastronomy and major events and
anniversaries. Priorities include reviewing the tourism strategy, developing commercial
packages for specific markets, and improving the quality of hospitality, services and
products. Another priority is to address accessibility at the main tourism sites in terms of
opening hours, languages spoken, access for people with reduced mobility, and those
arriving by public transport etc.
● Maximising capacity and resources to support tourism. Priorities include: involving
professional associations in implementing tourism policy; improving the training of
tourism personnel; improving financial tools; adopting a more cohesive regional
development policy; creating two or three new resorts using public-private partnerships
to develop and enhance government-owned assets; developing high performance
statistical tools; simplifying standards for tourist establishments, redirected towards
quality, accessibility and security; simplifying the institutional organisation of tourism;

restructuring and streamlining the Wallonia-Belgium Tourism Bureau (through the Sixth
State reform which confers more responsibility for tourism to the regions).
In order to obtain an objective and comprehensive measure of the economic impact of
tourism in Wallonia and to inform decision making, the CGT is working with others to
improve and update the socio-economic data available and to develop new instruments,
such as sectoral analysis of accommodation and attractions, and customer surveys.
Particular attention is being paid to accommodation, especially the hotel sector, as this
represents the main source of tourism income.
At the end of 2016, the government of Wallonia approved the first CGT administration
contract, which sets out changes for the coordination of the CGT, and four strategic
objectives for implementation starting in 2017. The objectives are: i) developing a
sustainable, innovative and high-quality professional tourist sector, establishing the added
value of the CGT as the go-to platform for service providers; ii) taking account of the
transversal nature of tourism in management of partnerships and networks; iii) enhancing
the coordination and governance of the CGT; and iv) deploying a modern, fit-for-purpose
policy for the management of human resources.
The Walloon Tourism Code (CWT), which dates back to 2009, structures and regulates
the region’s tourism activities (organisations, attractions and all forms of accommodation).
It became necessary to update the legislation to address new developments and
expectations on the part of both tourism professionals and tourists themselves. The review
process, which included consultation with industry, had the following aims:
● Identifying, restructuring and clarifying the roles of the various players in the tourism
industry,
● Allocating sufficient financial resources to high-quality tourism experiences in order to
promote and encourage centres of job creation,
● Responding to the emergence of collaborative platforms.
The revised Tourism Code came into force in 2017. It reorganises tourist information
centres, the Maisons du Tourisme, in order to establish a coherent mass-market tourist
service while generating economies of scale. Communication and promotional resources
will be concentrated on a reduced number of Maisons du Tourisme (down from 42 to 28).

Statistical profile
Table 1. Belgium: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Overnight visitors (tourists) 3 806 3 947 4 175 4 304 | 4 326
Brussels 634 665 702 676 | 634
Flanders 2 188 2 277 2 420 2 582 | 2 590
Wallonia 983 1 005 1 053 1 046 | 1 102
Hotels and similar establishments 6 328 6 525 6 926 7 048 | 6 968
Brussels 1 111 1 163 1 232 1 182 | 1 030
Flanders 3 674 3 798 4 032 4 260 | 4 240
Wallonia 1 543 1 564 1 661 1 607 | 1 698
Inbound tourism
Brussels 2 382 2 450 2 546 2 534 | 2 101
Flanders 2 955 2 969 3 051 3 107 | 2 736
Wallonia 809 809 791 799 | 720
Top markets for Belgium
Netherlands 1 175 1 093 1 053 1 044 | 966
France 985 1 008 1 007 957 | 883
United Kingdom 813 848 880 873 | 702
Germany 637 658 667 698 | 614
United States 309 306 343 362 | 275
Brussels 4 593 4 772 5 058 4 987 | 3 962
Flanders 5 554 5 509 5 647 5 711 | 5 023
Wallonia 1 399 1 344 1 377 1 337 | 1 230
Outbound tourism
Brussels 1 690 1 848 2 226 1 879 2 295
Flanders 6 088 6 910 7 256 7 344 9 253
Wallonia 3 379 3 792 3 790 3 277 4 225
Inbound tourism
International passenger transport receipts 938 866 992 1 011 ..
Outbound tourism
International passenger transport expenditure 1 705 1 771 1 972 1 975 ..
.. Not available; | Break in series; p Provisional data
1 2 http://dx.doi.org/10.1787/888933639645

Table 2. Belgium: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries .. .. .. .. .. ..
Accommodation services for visitors 8 210 .. .. .. .. ..
Brussels 282 .. .. .. .. ..
Flanders 4 698 .. .. .. .. ..
Wallonia 3 230 .. .. .. .. ..
Food and beverage serving industry .. .. .. .. .. ..
Passenger transport .. .. .. .. .. ..
Air passenger transport .. .. .. .. .. ..
Railways passenger transport .. .. .. .. .. ..
Road passenger transport .. .. .. .. .. ..
.. .. .. .. .. ..
industry
Cultural industry .. .. .. .. .. ..
Sports and recreation industry .. .. .. .. .. ..
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933639664

II. OECD COUNTRY PROFILES – CANADA
Canada

Tourism’s direct contribution to Canada’s GDP was CAD 38.8 billion in 2016, an
increase of 5.1% over 2015. Overall, tourism continues to represent approximately 2% of
GDP. One in 10 jobs (1.8 million) were associated with tourism industries in 2015, with
721 600 jobs directly supported by tourism in 2016. Canada’s domestic tourism represented
78% of tourism revenues in 2016.
Growth in international arrivals to Canada has been very strong in recent years. In
2016, Canada welcomed nearly 20 million overnight visitors, up 11.1% on 2015 which was
itself already a strong year. 2016 was the second-best year on record.
Canada’s largest international market is the United States, with 13.9 million overnight
visitors in 2016, an increase of 9.7% on the previous year. Canada posted strong growth
from a number of key overseas markets, including the United Kingdom (up 16.5% to
833 300); China (up 23.6% to 610 100) and France (up 9% to 545 800). Amongst countries with
a smaller share of the inbound market, South Korea and Mexico exhibited particularly
strong growth (up 29.6% and 24% respectively).
Meetings, conventions and incentive travel remains steady, attracting close to
2 million visitors each year, with total spending of approximately CAD 1.7 billion.

In Canada, the Federal Government, the ten provincial governments, the three
territorial governments and numerous municipalities all play a role in promoting tourism.
Innovation, Science and Economic Development Canada (ISED) is the federal
department whose mission is to foster a growing, competitive, knowledge-based Canadian
economy. Within ISED, the Minister of Small Business and Tourism has the lead
responsibility for the tourism sector.
ISED is responsible for leading coordination among federal departments to support a
whole-of-a government approach to the implementation of Canada’s New Tourism Vision. It
does this through the Canada’s New Tourism Vision Steering Committee which brings
together eighteen federal departments and agencies directly implicated in Canada’s New
Tourism Vision. Participating federal organisations include: Parks Canada, which is
responsible for national parks, national historic sites and national marine conservation areas;
Canada’s six regional development agencies, which support many local tourism-related
investment initiatives; and Destination Canada, the national tourism marketing organisation.
Destination Canada operates as a Canadian Crown corporation wholly owned by the
Government of Canada. Destination Canada undertakes initiatives to market Canada. It
does this in conjunction with its partners, which include provincial, territorial and regional

destination marketing organisations. The Government of Canada stabilized Destination

Canada annual funding to CAD 95.5 million.
Canada: Organisational chart of tourism bodies
Innovation, Science and Federal Government

Economic Development Minister of Small Business Departments Provincial and Territorial
and Tourism (Partners in Whole-of- Tourism Ministers
Government Approach)
Canadian Council of
Destination Canada Tourism Ministers
Provincial and Territorial

Destination Marketing
Organisations
Tourism Stakeholder
Organisations
Source: OECD, adapted from Innovation, Science and Economic Development, 2018.
Through multiple initiatives, Destination Canada promotes Canada as a premier

destination and showcases the country’s most unique attributes. Northern and rural
Canada, for instance, remain largely undiscovered by foreign tourists. Destination Canada
has partnered with destination marketing organisations, such as Tourism Yukon, to
promote this undiscovered frontier. Destination Canada has developed Signature
Experiences in all three Territories of Canada’s North, (complementing those throughout
the rest of the country). These help local tour operators to showcase unique Northern
adventures, such as Arctic safaris, cruises and excursions to view the Aurora Borealis.
Destination Canada also promotes tourism in Canadian rural areas through its suite of
Signature Experiences. For example, in Alberta, tourists are invited to take part to a cattle
drive at a ranch and sleep in an authentic western bunkhouse.
Provincial and Territorial governments also play an active role in the development and
promotion of tourism at the sub-national level in every part of the country. Ministers
responsible for tourism from each jurisdiction meet as the Canadian Council of Tourism
Ministers on an annual basis to discuss trends and issues of concern to the Canadian
tourism sector and work together to seek solutions.
Statistics Canada is the national statistical agency responsible for the collection and
analysis of tourism-related statistics. Statistics are compiled on a number of tourism
industries, such as air, boat, rail, bus and taxi transportation; traveller accommodation;
food services and drinking establishments; amusement and recreation, and travel
arrangement services. Statistics Canada is re-developing its two core national tourism
surveys to create the National Travel Survey and the Visitor Travel Survey, both operative
from 2018. Statistics Canada also compiles data on all international travellers cleared for

entry into Canada, and generates two major products for the macroeconomic evaluation of
tourism: the National Tourism Satellite Account and the National Tourism Indicators.

On May 11, 2017, the Minister of Small Business and Tourism announced Canada’s
New Tourism Vision, a strategic, whole-of-government approach coordinating action
across 18 federal departments and agencies to help grow Canada’s tourism sector and
increase international visitation. The Vision is guided by three overarching goals:
● Grow international visitation to Canada by 30 % by 2021,
● Double visitation from China by 2021,
● Position Canada to compete for a top-ten ranking as an international destination, by 2025.
In order to achieve these goals, the Vision sets out a detailed Action Plan that identifies
20 action items focused around three pillars: investments in stronger and more sustained
marketing, in measures to facilitate easier access (i.e. travelling to and within the country),
and in tourism product development (i.e. support for Canadian tourism businesses and
operators as they work to upgrade their offerings with new, innovative products and services).
Investment to support Canada’s New Tourism Vision

On a federal level, Canada’s New Tourism Vision and its 20-point action plan were
supported by major new investments announced in the 2017 federal Budget. To attract more
international visitors to Canada, Budget 2017 stabilised annual funding for Destination
Canada, Canada’s national tourism marketing organisation at CAD 95.5 million, starting in
2018-19. Stabilised funding will allow Destination Canada to continue its strong
collaboration with industry partners to maximise the impacts of its marketing campaigns to
draw in more tourists from abroad and increase economic activity.
To complement Destination Canada’s activities, Budget 2017 also provides CAD 8.6 million
over four years, starting in 2017-18, to Indigenous and Northern Affairs Canada to support
the development of Canada’s unique and authentic Indigenous tourism industry.
Finally, to ensure that tourism operators and governments make the most of their efforts
and investments, Budget 2017 provides CAD 13.6 million over five years, starting in 2017-18,
and CAD 2.7 million per year thereafter, to Statistics Canada to broaden tourism data
collection.
The Government of Canada also works very actively with provincial and territorial
colleagues to grow and increase the competitiveness of Canada’s tourism sector. In 2016,
the Canadian Council of Tourism Ministers announced the Nunavut Declaration, which
commits to federal-provincial-territorial collaboration, and aims to strengthen competiveness,
grow Canada’s tourism offerings, and support a statistical system that meets the information
needs of decision-makers (Box 1.2).

Statistical profile
Table 1. Canada: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
United States 11 887 11 466 11 508 12 669 13 892
United Kingdom 597 609 659 686 805
China 273 342 448 483 591
France 423 452 465 477 515
Germany 277 313 324 325 359
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
TOURISM RECEIPTS AND EXPENDITURE, MILLION CAD
Inbound tourism
Outbound tourism
.. Not available
1 2 http://dx.doi.org/10.1787/888933639702

Table 2. Canada: Enterprises and employment in tourism

Number of
Number of persons employed1
establishments
2016 2012 2013 2014 2015 2016
Total .. 675 800 687 700 700 300 708 400 721 600
Tourism industries 200 835 534 800 543 000 551 200 559 400 569 800
Accommodation services for visitors 19 817 139 600 140 800 140 700 142 600 143 900
Food and beverage serving industry 84 296 203 000 210 200 216 400 221 000 228 100
Passenger transport 41 921 80 700 83 100 84 700 84 400 85 200
8 343 45 500 43 900 44 600 44 800 44 900
industry
Sports and recreation industry 46 458 66 000 64 900 64 800 66 700 67 700
.. .. .. .. .. ..
Other industries .. 141 000 144 700 149 100 149 000 151 800
.. Not available
1. Data refer to number of jobs.
1 2 http://dx.doi.org/10.1787/888933639721
Table 3. Canada: Internal tourism consumption

Million CAD
2016
Total .. .. ..
Transport equipment rental services .. .. ..
4 194 215 4 409
industry
Cultural services 3 380 1 968 5 348
Sports and recreation services .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933639740

II. OECD COUNTRY PROFILES – CHILE
Chile

Tourism in Chile has experienced a sustained increased in recent years and has
become one of the fastest growing sectors of the economy.
It has been estimated that tourism is directly responsible for 3.4% of Chile’s GDP and 5.1%
of employment. Tourism accounts for 4.4% of total exports and 32.6% of exports of services.
Inbound tourism has increased from 1.8 million in 2004 to more than 5.6 million in 2016.
Annual growth between 2015 and 2016 amounted to 26%, with a further 20% anticipated in
2017. The main markets are Argentina, Brazil, Bolivia, Peru and the United States.
Domestic tourism flows have also been increasing, with 10% growth in the last four
years to almost 29 million trips.
In 2016 domestic receipts accounted for an estimated USD 5.4 billion, while inbound
tourism accounted for USD 3.1 billion (including visitors and international transport).

Tourism in Chile comes under the responsibility of the Under-Secretary for Tourism
within the Ministry of Economy, Development and Tourism.
The Under-Secretary, is in charge of defining and implementing the national tourism
policy and strategies. The Under-Secretary is supported in this role by the Ministerial
Committee on Tourism, which advises the President of the Republic on matters of tourism,
and the Consultative Council for Tourism Development, which advises and collaborates
with the Ministerial Committee on national and international promotion policy. The
Under-Secretary’s responsibility is to encourage the development of the sector, encourage
investment, create jobs, reduce tourism seasonality and further the decentralization of
tourism in the country.
The National Tourism Service (SERNATUR) has the responsibility of executing tourism
policy and strategies.
Regional government together with the Regional Offices of the Tourism Service can
promote and develop tourism-related activities in their respective regions. Tourism
initiatives have to compete with other sectors for the regional budget.
The budget of the National Tourism Service is around USD 42.4 million in 2017 (up
from USD 41.8 million in 2016).
The Under-Secretary for Tourism was provided in 2015 with a budget of
USD 100 million for supporting short, medium and long term actions to implement the
National Plan for Sustainable Tourism Development 2014-18. The operational budget for
2017 is around USD 13.9 million, an increase of nearly 50% over the 2015 budget.

Chile: Organisational chart of tourism bodies
Ministry of Economy,
Development and Tourism
Inter-Ministerial
Committee on Tourism
Undersecretary of Tourism Consultative Council for Tourism

Development
National Tourism Service

(SERNATUR)
Source: OECD, adapted from the Ministry of Economy, Development and Tourism, 2018.

The key priorities and opportunities for tourism in Chile are identified in the National
Plan for Sustainable Tourism Development 2014-18.
The main priorities are to promote sustainable development of the sector through
actions in prioritised destinations, to increase recognition of tourism as an important
economic sector and to improve the competitive position of Chile. Specific goals are to:
● Develop new and innovative tourism experiences, considering cultural and identity
elements,
● Encourage more Chileans to travel, know and enjoy Chile, delivering both social and
economic benefits (Box 1.17),
● Capture more value from tourism, through actions to improve the offer and promotion
in prioritised international markets,
● Strengthen the sustainable development of destinations, from an integrated territorial
approach that promotes the engagement of local and regional actors (Box 3.9).
The above goals are being addressed through the ten-year public-private Transforma
Turismo programme. Its objective is to transform Chile into a sustainable, diverse and
sophisticated international tourism destination, with a tourism offer based on its natural and
cultural resources and achieving significant growth in the average value generated per tourist.
A diagnosis and Road Map for implementation of the programme was developed with
the participation of a wide group of state entities, tourist entrepreneurs, academics and
other tourism-related bodies. The programme has subsequently focused in the following
two areas:
● Improvement of five types of prioritised tourism experience in which Chile has comparative
advantage: nature and adventure tourism (with emphasis on wild protected areas);
astronomical tourism; wine tourism; indigenous tourism; and cultural, event and
gastronomy tourism.
● Development of tourist destinations, improving their management, sustainability and
connection (with each other and with their environment), with the purpose of
generating environments that give greater competitiveness to tourism products and
companies that participate in the tourism value chain. It considers actions in ten

selected destinations (among the 83 tourist destinations prioritized by the Under-

Secretariat of Tourism in the National Plan).
According to the Tourism Law, the Under-Secretary can propose to the Committee of
Ministers the declaration of Areas of Tourist Interest. These are territories that have special
conditions for attracting tourists and that require conservation measures and integrated
planning to promote investment by the private sector.
In 2016, Chile was recognised as the best adventure tourism destination in the world.
This reflects the great potential of Chile’s natural resources and the work undertaken in the
last three years around protected wilderness areas. Consideration is being given to the
prioritisation of some National Parks or National Reserves for the development of
sustainable tourism together with the surrounding communities. To date, a total of eight
parks have been prioritised by the Committee of Ministers. However, the Action Plan
prepared by the Under-Secretariat of Tourism, in conjunction with the National Forestry
Corporation, includes actions in 20 Protected Areas of the State.

Statistical profile
Table 1. Chile: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Overnight visitors (tourists) 20 506 21 531 e 22 823 e .. ..
Nights in all types of accommodation 128 105 134 510 e 142 580 e .. ..
Inbound tourism
Same-day visitors (excursionists) 843 881 926 1 009 1 072
Top markets
Argentina 1 378 1 363 1 326 1 947 2 901
Brazil 374 362 408 456 439
Bolivia 356 384 395 420 437
Peru 338 331 344 360 404
United States 158 154 162 187 209
Outbound tourism
Same-day visitors (excursionists) 611 675 673 744 716
Top destinations
Argentina 1 180 1 225 1 275 1 269 1 271
Peru 785 861 858 919 915
United States 182 198 225 259 299
Brazil 169 176 197 202 224
Spain 46 42 54 65 90
TOURISM RECEIPTS AND EXPENDITURE, MILLION USD
Inbound tourism
International passenger transport receipts 1 008 990 943 931 960
Outbound tourism
International passenger transport expenditure 567 632 618 554 578
.. Not available; e Estimated value
1 2 http://dx.doi.org/10.1787/888933639759

Table 2. Chile: Enterprises and employment in tourism

Number of
establishments1
2016 2012 2013 2014 2015 2016
Total 95 413 f 441 944 445 156 442 962 461 201 471 660 f
Tourism industries 92 253 f 421 820 427 754 425 841 442 748 451 875 f
Hotels and similar establishments 11 228 f 75 404 75 858 77 922 83 652 87 535 f
Food and beverage serving industry 34 402 f 171 010 183 119 180 727 191 866 196 906 f
Passenger transport 34 529 f 143 129 136 784 138 013 136 519 134 344 f
Air passenger transport 193 f 17 054 16 760 17 174 16 909 17 084 f
Railways passenger transport 52 f 6 224 2 553 6 261 6 277 5 524 f
Road passenger transport 34 017 f 115 750 113 863 111 373 110 029 108 685 f
Water passenger transport 267 f 4 101 3 608 3 205 3 304 3 051 f
Passenger transport supporting services 309 f 952 865 706 775 1 036 f
Transport equipment rental 4 027 f 18 007 17 649 14 644 14 772 16 145 f
1 941 f 7 781 7 660 7 932 8 650 8 975 f
industry
Cultural industry 131 f 3 119 3 237 3 159 3 458 3 580 f
Sports and recreation industry 370 f 2 418 2 582 2 738 3 056 3 354 f
5 316 f .. .. .. .. ..
Other industries 3 160 f 20 124 17 402 17 121 18 453 19 785 f
.. Not available; f Forecast value
2. Data refer to number of employees.
1 2 http://dx.doi.org/10.1787/888933639778
Table 3. Chile: Internal tourism consumption

Million CLP
2013
Total .. .. ..
Consumption products .. .. ..
Tourism characteristic products 2 140 361 p 1 118 040 p 3 785 655 p
Accommodation services for visitors 268 285 p 144 461 p 723 961 p
Food and beverage serving services 268 285 p 220 958 p 535 423 p
Passenger transport services 302 964 p 130 967 p 501 681 p
Air passenger transport services 176 358 p 40 085 p 270 839 p
Railways passenger transport services 969 p 7 097 p 8 358 p
Road passenger transport services 118 855 p 82 227 p 204 478 p
Water passenger transport services 6 783 p 1 557 p 18 006 p
Transport equipment rental services 21 p 15 316 p 15 337 p
.. .. ..
industry
Sports and recreation services 153 584 p 31 497 p 193 588 p
Country-specific tourism characteristic goods 666 295 p 218 419 p 885 629 p
Country-specific tourism characteristic services 480 926 p 356 422 p 930 035 p
Other consumption products .. .. ..
1 2 http://dx.doi.org/10.1787/888933639797

II. OECD COUNTRY PROFILES – CZECH REPUBLIC
Czech Republic

Tourism’s share of GDP in the Czech Republic has been slowly increasing up from 2.7%
in 2011 to 2.8% in 2015. The number of people employed in tourism totalled 227 676 in 2015.
The sector’s share of total employment in the country has remained relatively stable at
around 4.5 % since 2011.
The total number of foreign visitor arrivals was 29.6 million in 2015, approximately 39% of
which were by overnight visitors, while 61% were same-day visitors (including those in transit).
Some 8.7 million non-resident guests stayed in collective tourism accommodation
establishments in 2015, up from 8.1 million in 2014 (up 7.5%). The average annual growth in
guest numbers at collective accommodation establishments was 5.1% between 2012 and 2015.
In 2015, international tourism receipts totalled EUR 5.5 billion (up 6.3%) with travel’s
share of total export revenues amounting to 4.7%. International travel expenditure was
EUR 4.3 billion (up 11.2%), resulting in a positive balance on the travel and tourism account
of EUR 1.2 billion in 2015.

The Ministry of Regional Development is responsible for coordinating and setting
guidelines in the tourism sector. The Tourism Department carries out activities related to
the development and implementation of tourism policy. It implements measures arising
from tourism-related strategies, and undertakes activities to enhance awareness and
recognition of tourism as an important industry within the national economy, and
strengthen international co-operation. The Ministry is also responsible for preparing
relevant legislation as well as monitoring and collecting statistical information, developing
tourism in the regions and supporting the quality and structure of tourism services.
The Czech National Tourism Board, CzechTourism, is a grant-aided organisation
supported by the Ministry of Regional Development. Its principal mission is to generate
awareness of the Czech Republic as a tourism destination. Its main partners are the regional
tourism organisations, municipalities and business enterprises. CzechTourism’s objective is
to promote tourism in co-operation with the private sector, and to review the medium-term
strategy for the marketing of tourism products in domestic and international markets.
The organisation of tourism in the Czech Republic is strongly influenced by the
respective administrative systems of the 14 self-governing regions in the country. The
regions and individual communities are represented by different public institutions and
co-operation between national and regional tourism organisations is critical. In every
tourist region, a coordinator is appointed to coordinate the marketing activities of all public
tourism bodies and act as the communication channel between regional public tourism

bodies and CzechTourism. Ad hoc working groups are set up as required to assist with
tourism policy, drafting of tourism legislation, the preparation and elaboration of tourism
support programs, etc.
The National Collegium of Tourism is the consultative and advisory body of the
Ministry, facilitating co-operation between state administrative bodies, self-administrative
bodies, professional associations, the academic sector, independent experts, the public,
unions and other stakeholders.
The Tourism Department’s budget in 2016 was EUR 8.4 million, a reduction of 15.9% on
the previous year. CzechTourism’s budget in 2016 was EUR 17.1 million representing a
reduction of 14.8% from 2015.
New operational programmes in tourism over the 2014-2020 period have also been cut
back compared to the programming period 2007-2013. The most significant impact is on the
development of tourism infrastructure, marketing activities, statistics and market research.
Czech Republic: Organisational chart of tourism bodies
National Regional
Ministry of Regional
Development
14 self-governing regions
Tourism Department Tourism Commission of

Association of Regions of Departments of Tourism in
the Czech Republic Regions
Tourism Competitiveness
Tourism Associations
(private sector)
Tourism Legislation
Czech Tourism Regional Bodies
(National Tourism Board) Destination
Management
National Collegium of
Tourism Development Support Tourism
Source: OECD, adapted from the Ministry of Regional Development, 2018.

The Ministry for Regional Development has prepared a National Tourism Policy for
2014-2020, which was approved in 2013 along with a marketing strategy (2013-2020). The
strap line for the strategy is “Destination Czech Republic – number one in the heart of
Europe” with a global objective of increasing the competitiveness of the tourism sector at
the national and regional levels and maintaining its economic performance through a
balance between economic, socio-cultural, environmental and regional development.
The specific aims and priorities of the policy are to:
● Enhance the quality of the tourism supply, including cultivating of the business
environment,
● Build a structure of institutions to effectively implement the tourism policy,
● Improve the quality of human resources,

● Improve the access of service providers to tourism markets,

● Strengthen the role of tourism in the economic and sectoral policies of the state.
There are three measures aimed at tackling the high-priority challenges for tourism in
the Czech Republic:
● The Ministry for Regional Development, in co-operation with CzechTourism and tourism
stakeholders, is implementing a project previously co-financed by the EU Structural
funds on service quality. The Czech Service Quality System, which is based on the
Service Qualität Deutschland system, is an innovative system of certification aimed
primarily at small and medium-sized enterprises (SMEs) active in tourism to enable
them to improve the quality of their services and to gain much-needed expertise.
● The Ministry of Regional Development, in co-operation with the Czech Statistical Office,
is currently implementing a project on tourism statistics, aimed at improving and
expanding statistical data related to inbound tourism to the Czech Republic. This project
includes an inbound tourism survey and analysis for the Tourism Satellite Account.
● The government is implementing the National Support Programme for Tourism in
Regions 2017-2020. Grants under this programme include a maximum of 50% of project
funding with the balance coming from the applicant’s own resources. The programme is
aimed at supporting tourism infrastructure and marketing activities. The first allocation
for both sub-programs is EUR 11.2 million. Potential grant recipients include regions,
municipalities, businesses and non-profit organizations. Support for marketing
activities is aimed at destination management organizations. The programme is a
successor to the National Support Programme for Tourism 2010-2016 in which more than
EUR 15.2 million was allocated from the state budget for 291 projects.
Regular monitoring reports include key indicators such as the number of nights spent
by domestic and foreign visitors in collective accommodation establishments, occupancy
rates, the number of people employed in tourism, the gross domestic tourism product,
domestic and inbound tourism consumption, foreign exchange earnings from tourism and
the World Economic Forum index of competitiveness.

Statistical profile
Table 1. Czech Republic: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 76 328 75 353 76 059 77 817 p 85 144 e
Overnight visitors (tourists) 29 220 29 215 29 412 28 325 p 31 960 e
Same-day visitors (excursionists) 47 109 46 138 46 646 49 492 p 53 183 e
Nights in all types of accommodation 21 484 | 21 163 20 837 23 807 25 429
Hotels and similar establishments 11 910 | 11 825 11 716 13 290 14 624
Other collective establishments 9 575 | 9 339 9 121 10 517 10 805
Inbound tourism
Total international arrivals 25 750 26 332 27 166 29 604 p 32 519 e
Top markets
Germany 1 521 | 1 484 1 553 1 767 1 881
Slovak Republic 436 | 452 493 578 642
Poland 402 | 424 449 485 541
United States 391 | 413 441 509 515
United Kingdom 368 | 379 397 443 474
Other collective establishments 1 858 | 2 073 2 139 2 316 2 399
Outbound tourism
Total international departures 10 990 10 305 10 141 10 383 p 10 718 e
Top destinations
Slovak Republic 1 025 949 941 1 386 p 1 151 e
Croatia 806 797 785 721 p 828 e
Italy 549 526 553 497 p 552 e
Austria 478 577 570 492 p 589 e
Greece 314 339 291 253 p 265 e
TOURISM RECEIPTS AND EXPENDITURE, MILLION CZK
Inbound tourism
International passenger transport receipts 14 071 14 676 16 381 17 464 ..
Outbound tourism
International passenger transport expenditure 1 642 1 185 845 1 146 ..
.. Not available; | Break in series; e Estimated value; p Provisional data
1 2 http://dx.doi.org/10.1787/888933639816

Table 2. Czech Republic: Enterprises and employment in tourism

Number of
establishments
2015 2012 2013 2014 2015 2016
Total .. 229 551 227 630 225 006 p 227 676 p ..
Tourism industries .. 226 288 224 338 221 691 p 224 309 p ..
Hotels and similar establishments .. 39 875 39 611 39 042 p 39 140 p ..
Food and beverage serving industry 49 909 69 798 69 103 65 658 p 67 214 p ..
Air passenger transport .. 2 535 2 402 2 334 p 2 058 p ..
Railways passenger transport .. 13 345 13 316 13 192 p 13 154 p ..
Road passenger transport .. 11 577 11 548 11 627 p 11 851 p ..
Water passenger transport .. 53 53 50 p 51 p ..
Passenger transport supporting services .. 3 209 3 346 3 403 p 3 611 p ..
Transport equipment rental .. 118 114 117 p 104 p ..
.. 12 161 11 778 12 341 p 12 853 p ..
industry
Cultural industry .. 11 040 11 190 11 381 p 11 703 p ..
Sports and recreation industry .. 2 533 2 548 2 579 p 2 658 p ..
.. .. .. .. .. ..
Other country-specific tourism industries .. 60 045 59 328 59 968 p 59 912 p ..
Other industries .. 3 262 3 292 3 315 p 3 366 p ..
1 2 http://dx.doi.org/10.1787/888933639835
Table 3. Czech Republic: Internal tourism consumption

Million CZK
2015
Total .. .. ..
Railways passenger transport services 852 1 024 1 876
Road passenger transport services 4 258 2 542 6 800
Water passenger transport services 106 .. 106
Passenger transport supporting services 3 087 4 421 7 508
5 898 807 6 705
industry
Country-specific tourism characteristic services 844 .. 844
.. Not available
1 2 http://dx.doi.org/10.1787/888933639854

II. OECD COUNTRY PROFILES – DENMARK
Denmark

In 2015, spending by inbound tourists was DKK 38.9 billion, representing 3.5% of total
Danish exports. The direct contribution of tourism to the Danish economy measured by
gross value added was 1.7%. If derived effects are included, the contribution was 3.2%
(DKK 56.6 billion).
Tourism spending generated 118 000 full time jobs, accounting for 4.2% of total
employment.
Tourism bednights increased by 15% from 2008 to 2016. The highest growth rates have
been in city tourism (85%) and business tourism (15%). Coastal and nature related tourism
has also grown but at a more modest pace of 7%.
In 2016, there were 51.5 million bednights at hotels, holiday centres, hostels, camping
sites, marinas and rented holiday houses (26.1 million international bednights). The top
foreign origin markets were Germany, Norway, Sweden, Netherlands and the United
Kingdom. Together they accounted for 82% of all international bednights in Denmark.
Germany continues to be Denmark’s primary foreign market with 57% of the international
bednights. Denmark has experienced substantial growth from long haul markets such as
China, the United States and India in recent years, but neighbouring European countries
continue to be the mainstays of Danish tourism.
In 2015, coastal and nature related tourism generated 46% of total tourism revenue,
while city tourism and business tourism generated 25% and 28%, respectively. Copenhagen
accounts for 24% of the country’s total tourism revenue, while the Capital Region accounts
for 41%.

In January 2015, the Danish law on tourism came into force with the goal of achieving
a greater impact from the investment made in the sector every year through better
coordination at national, regional and local levels.
The Danish National Tourism Forum was established to lead and coordinate the public
promotion of Danish tourism. Members of the Forum include: a chairman from the
Ministry of Industry, Business and Financial Affairs, VisitDenmark’s Chairman, two
members from Danish regions, one member from Local Government Denmark, two
members representing the tourism industry and a tourism researcher.
The National Tourism Forum has developed a national strategy for Danish tourism to
2025. Additionally, the Forum collects tourism data, undertakes an annual analysis of the
development of Danish tourism and reports annually to the Minister.

The legislation also established the Danish Tourism Advisory Board to advise the
National Tourism Forum. The Advisory Board comprises a chairman, 17 members and two
observers, representing a wide range of stakeholders with tourism interests to ensure the
provision of professional and competent advice.
Under the legislation, three tourism development agencies have also been established:
Danish Coastal and Nature Tourism, Danish Business and Conferencing Tourism and
Danish City Tourism. Their responsibilities are to generate growth in their particular sector,
based on their own strategies; under the umbrella of the national tourism strategy.
The international branding and marketing of Denmark is managed by VisitDenmark
which is also responsible for market research and monitoring trends and activity in Danish
tourism. VisitDenmark co-operates with the Ministry, the Danish National Tourism Forum
and the regional tourism development agencies. The National Tourism Forum coordinates
collaboration between the relevant tourism bodies.
The Ministry of Industry, Business and Financial Affairs and VisitDenmark co-operate
with several other ministries e.g. the Ministry of Environment and Food, the Ministry of
Transport, Building and Housing, the Ministry of Foreign Affairs and the Ministry of Culture –
including the Danish Agency for Culture and Palaces.
Total public expenditure to enhance Danish tourism was DKK 664 million in 2015
coming from the state (17%), regions (21%) and local municipalities (62%).
Denmark: Organisational chart of tourism bodies
Ministry of Industry, Business and Financial

Affairs
National level
Danish Tourism Advisory Board Danish National Tourism Forum
VisitDenmark
Danish Coastal and Nature Danish Business and

Regional level Danish City Tourism
Tourism Conference Tourism
Local level West Coast-Partnership Baltic Sea-partnership Global Connected
Tourism Industry
Source: OECD, adapted from Ministry of Industry, Business and Financial Affairs, 2018.

In order for Danish tourism to stay competitive and win market share in the
international competition for tourists, efforts will be directed to address the following
strategic challenges:
● Evolving visitor demand: Denmark must provide the accommodation and experiences
necessary to meet increasingly diverse visitor expectations,

● Below average growth: During the period 2008-2015, Denmark’s growth has been below
the average in Northern Europe,
● Below average visitor satisfaction: Denmark scores lower than its neighbouring countries
on a number of parameters, notably in terms of the relation between price and quality.
Examples of evolving visitor demand include the desire for authentic experiences,
sporting and cultural events, and digital platforms. Tourism stakeholders must co-operate
and take strategic action while focusing on the unique qualities and strengths of the Danish
tourism product, including openness, a culture of confidence and an informal approach, as
well as genuine and intimate experiences both in the larger cities and in Danish nature.
The common vision for Danish tourism is that: “Denmark strives to be an engaging
tourist destination where we – together with our guests – create a variety of quality
experiences – always with a human touch and never far away.”
In September 2016, the government launched a new national strategy for Danish
tourism with three overall targets to be achieved by 2025:
● Denmark should have one-third more tourists, corresponding to 17 million more bednights
compared to 2015,
● Tourism spending should reach DKK 140 billion, corresponding to an increase of
approximately DKK 45 billion compared to 2014,
● Foreign tourists should be at least as satisfied with their holiday in Denmark as the
Northern European average.
The national strategy includes a number of initiatives intended to ensure development
and growth in tourism throughout Denmark. The initiatives fall within five strategic key
areas:
● More effective marketing aimed at the most important markets and target groups:
Marketing efforts to be based on common stories, be coordinated and take account of
digital developments.
● Improved accessibility, internet and signage.
● Better tourist experiences in Denmark: This requires development of strong destinations,
higher quality and focus on, for example, outdoor tourism, cultural tourism, events and
congresses.
● Increased tourism capacity: During the high season, demand for modern and attractive
accommodation exceeds the capacity in certain parts of the country.
● International competitiveness: An appropriate framework is required if Denmark is to
offer good value quality products including competitive energy taxes and up-to-date
regulations which support innovation and are not unnecessarily burdensome.

Digitalisation of tourism marketing and management in Denmark

As an initiative under the national strategy for Danish tourism, VisitDenmark launched
its Smart Tourism Strategy in 2017 to fight the competitive challenges and exploit the
possibilities of digitalisation. The strategy seeks to contribute to the National Tourism
Strategy through three concerted initiatives:
● Smart Marketing: Increase the demand for Denmark as a tourist destination by prioritising
digital marketing – mobile and social-first.
● Smart Working: Digitalisation of Danish tourism’s value-chains and increase coordination
and co-operation between actors within Danish tourism accordingly.
● Smart Insights: Identify relevant data and data sources in a common knowledge-hub,
sharing and exchanging knowledge with other actors inside and outside the tourism
sector in order to optimise and promote innovation in the marketing, product
development and sales process.
The strategy outlines the role of VisitDenmark and other partners in securing more
effective co-operation.

Statistical profile
Table 1. Denmark: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 45 642 e 45 686 e 50 793 e 50 732 e 50 987 e
Overnight visitors (tourists) 9 863 e 9 907 e 14 620 e 14 954 e 15 208 e
Same-day visitors (excursionists) 35 779 e 35 779 e 35 779 e 35 779 e 35 779 e
Nights in all types of accommodation 62 139 62 417 64 138 64 138 ..
Hotels and similar establishments 10 022 10 065 10 305 11 037 ..
Specialised establishments 9 751 10 030 10 361 10 019 ..
Other collective establishments 5 184 5 139 6 290 6 606 ..
Private accommodation 37 183 37 183 37 183 37 183 ..
Inbound tourism
Total international arrivals 25 866 e 25 795 e 27 607 e 27 764 e 28 121 e
Overnight visitors (tourists) 8 526 e 8 455 e 10 267 e 10 424 e 10 781 e
Same-day visitors (excursionists) 17 340 e 17 340 e 17 340 e 17 340 e 17 340 e
Top markets
Germany 2 156 2 065 2 687 2 821 3 048
Norway 1 479 1 481 1 786 1 801 1 767
Sweden 1 184 1 207 1 443 1 438 1 432
United Kingdom 650 667 744 787 822
United States 510 518 507 514 523
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
TOURISM RECEIPTS AND EXPENDITURE, MILLION DKK
Inbound tourism
Outbound tourism
.. Not available; e Estimated value; p Provisional data
1 2 http://dx.doi.org/10.1787/888933639873

Table 2. Denmark: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Hotels and similar establishments 1 506 12 293 12 422 13 172 13 413 ..
566 4 637 4 514 4 477 4 483 ..
industry
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933639892
Table 3. Denmark: Internal tourism consumption

Million DKK
2015
Total .. .. ..
2 066 766 2 832
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933639911

II. OECD COUNTRY PROFILES – ESTONIA
Estonia

In Estonia, both inbound and domestic tourism have seen steady growth. Taking direct
and indirect impacts together, tourism contributed around 6% of GDP in 2016.
Nearly 6 million foreign visitors came to Estonia in 2016, up 4% on 2015, spending
nearly EUR 1.4 billion on goods and services. Export revenues from tourism amounted to
over EUR 1.7 billion and contributed 32% of services exports in 2016. Every fourth trip to
Estonia was made from outside the European Union and the number of tourists arriving
from Asian countries increased throughout the year.
Over 3 million domestic and foreign tourists stayed in accommodation establishments
in 2016. Compared to 2015, numbers were up by 7% and nights spent increased by 8%. 64% of
nights spent in Estonian accommodation establishments were attributable to foreign
tourists, of which 63% were from the neighbouring countries of Finland, Russia and Latvia.
Compared to 2015, the number of tourists arriving from Finland, Russia and Latvia increased
by 5%, 8% and 11%, respectively.
Of the foreign tourists staying in accommodation establishments, 73% came to Estonia
for a holiday, while 21% were on business. 62% of domestic tourists were on holiday.

National tourism policy and development activities are implemented by the Estonian
Tourist Board, under the Enterprise Estonia Foundation, which in turn is administered by
the Ministry of Economic Affairs and Communication.
Ministry activities include:
● Setting tourism policies and programmes and overseeing their implementation,
● Applying for funding from the state budget and the EU to deliver tourism development
programmes and projects,
● Drafting tourism-related legislation and regulations,
● Participating in the activities of international tourism organisations,
● Facilitating long term policy development through co-operation with a range of tourism
stakeholders.
The Estonian Tourist Board undertakes international and domestic marketing and
engages in product development. It also carries out market research in the main target
markets and develops and administers the national tourist information service.
Other organisations involved at the national level are the Estonian Travel and Tourism
Association, Estonian Hotel and Restaurant Association, Estonian Rural Tourism non-profit

organisation, Tourism Foundations for north, south and west Estonia, Estonian Spa
Association, and Estonian Convention Bureau.
Reform of local administration, including merging local municipalities, will have an effect
on local level tourism organisations and their funding. The new National Tourism Strategy
2020+ (to follow the current Development Plan 2014-20) will take account of these changes.
Regional County development centres are located in all 15 counties, offering free
advisory services to new and existing enterprises, local government and non-profit
associations and foundations. They also engage in the management, dissemination and
development of regional and national tourist information.
The overall budget for tourism development is stated in the National Tourism
Development Plan for 2014-20 as approximately EUR 116 million, the majority of which is
financed through Enterprise Estonia/Estonian Tourist Board. The main sources of funding
for tourism development are EU structural funds and the state budget. All the measures
and activities of the Estonian Tourist Board are evaluated through measurable indicators
which are also set in the National Plan.
While there are no specific tourism taxes, in spring 2016, the Government took a
decision to increase the value added tax for accommodation providers from 9% to 14%
from 2017. However, this decision was subsequently rescinded, due to the possible negative
impact on both the export of tourism services and domestic tourism.
Estonia: Organisational chart of tourism bodies
Ministry of Economic Affairs and Tourism

Communications Industry Organisations
National level
Enterprise Estonia
Estonian Tourist Board
Regional level Regional Tourist Organisations Tourism Destinations
Local Tourist Information Centres and

Local level Municipalities
Destinations
Source: OECD, adapted from the Ministry of Economic Affairs and Communications, 2018.

The main goal of the Estonian National Tourism Development Plan 2014-2020 is to
ensure competitive and sustainable development of Estonia’s tourism sector. Current
actions include:
● Promotional activities to enhance Estonia’s position as a tourist destination,
● Developing internationally attractive family tourism attractions,
● Developing competitive (including regional) tourism products,
● Better management of tourism information,
● Monitoring tourism development,
● Fostering international events.

Tourism in Estonia is recognised as an engine for employment, and a significant contributor

to Estonia’s competitiveness, exports and economic growth. However, progress in tourism
should be measured not only in increased number of visitors or overnight stays, but also through
growth in overall tourism expenditure, increased quality of service and a greater diversity in the
product offer. Recent investment in the tourism sector has been aimed at diversifying tourism
attractions and motivating visitors to prolong their stay and increase return visits.
Awareness of Estonia as a travel destination remains low in Western and Southern
European countries, pointing to an ongoing need to promote Estonia as an alternative to
more traditional destinations. Promotional activities targeted toward long-haul markets
such as China, Japan and USA are also carried out in co-operation with other Baltic
countries and Nordic neighbours.
Growth in visitor numbers creates the preconditions for development of new
international transportation routes, better connectivity and intermodal transport systems.
An example is the Rail Baltic project, which is proposed as a modern and eco-friendly high-
speed railway that will connect Estonia with its neighbours and with Central and Western
Europe. Rail Baltic is one of the biggest investments in the coming years that will improve
travel opportunities for Estonian people as well as developing business and trade, tourism
and the exchange of goods. The railway route will ensure speeds of up to 240 km/h and
provide the opportunity to travel comfortably and quickly to Latvia and Lithuania and
onwards to Central Europe and beyond.
Implementation of the current National Tourism Development Plan 2014-2020 has
largely been based on investment of EU structural funds. The underlying principle of the
plan is to offer a high quality visitor experience that builds on welcoming and safe tourist
routes accessible to people of all ages and abilities.
Some specific initiatives to date have included:
● Developing Estonia as an attractive conference destination and addressing seasonality
by continuing to support international conferences and large scale events. As part of this
initiative, the development of a major conference centre in Tallinn is planned and will be
funded from the state budget,
● Infrastructure investment in new family tourism attractions to diversify the regional
tourism offer,
● Further development of coastal and marine tourism, including support for development
of the small harbour network,
● Organising Baltic Connecting 2017, an event focused on long-haul markets which aims to
inform foreign travel trade professionals about tourism opportunities in Estonia, Latvia
and Lithuania.
A review of the plan will be undertaken in 2018, together with planning and consultation
for a new long-term National Tourism Strategy that will aim to further increase tourism
income, investment to improve the quality of the tourism offer, and enhancement of unique
local experiences. There is also a recognised need to develop Estonia as a sustainable tourism
destination with the right balance between promoting tourism based on the country’s
natural assets and action to protect these assets in the long term.
It will also be necessary to plan for a shift from EU funding to national funding, take
account of emerging trends in European and global tourism, and take a whole-of-
government policy approach to long-term sustainable tourism development.

Statistical profile
Table 1. Estonia: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Overnight visitors (tourists) 966 1 041 1 104 1 183 1 268
Other collective establishments 571 604 600 633 719
Inbound tourism
Top markets
Finland 829 895 916 1 234 | 1 280
Russian Federation 266 305 275 388 | 412
Latvia 101 105 113 246 | 265
Germany 111 102 113 211 | 221
Sweden 78 74 72 117 | 121
Outbound tourism
Same-day visitors (excursionists) 1 174 1 093 1 129 518 512
Top destinations
Finland 647 578 576 566 574
Latvia 203 228 247 358 347
Germany 137 137 139 223 221
Sweden 167 155 164 217 237
Russian Federation 249 222 233 214 219
Inbound tourism
International travel receipts 954 e 1 226 1 366 1 287 1 383 p
International passenger transport receipts 286 298 313 342 ..
Outbound tourism
Total international expenditure 747 931 1 009 1 014 993 p
International travel expenditure 620 e 797 885 885 993 p
International passenger transport expenditure 127 133 124 129 ..
1 2 http://dx.doi.org/10.1787/888933639930

Table 2. Estonia: Enterprises and employment in tourism

Number of
establishments2
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Accommodation services for visitors1 1 417 5 900 6 100 6 500 6 900 ..
398 1 500 1 800 1 600 1 600 ..
industry
.. .. .. .. .. ..
.. Not available
1. Data for accommodation service for visitors refer to number of establishments.
1 2 http://dx.doi.org/10.1787/888933639949
Table 3. Estonia: Internal tourism consumption

Million EUR
2012
Total 184 1 251 1 703
Consumption products 177 1 127 1 571
Tourism characteristic products 151 785 1 173
Accommodation services for visitors 25 199 323
Food and beverage serving services 31 230 261
Passenger transport services 48 256 401
Air passenger transport services 26 77 127
Railways passenger transport services 3 1 8
Passenger transport supporting services .. 7 7
41 32 83
industry
Cultural services 3 41 44
Sports and recreation services 1 7 8
Country-specific tourism characteristic services 3 10 18
Other consumption products 26 342 398
Tourism connected products 13 35 64
Non-tourism related consumption products 13 307 333
.. Not available
1 2 http://dx.doi.org/10.1787/888933639968

II. OECD COUNTRY PROFILES – FINLAND
Finland

In recent years, tourism in Finland has grown more than other sectors and is
recognised as an important contributor to growth in the economy and the creation of jobs.
The number of international travellers has doubled since 2000, providing revenue of
EUR 3.7 billion in 2015. In 2015, the value added generated by tourism amounted to
EUR 4.5 billion, or 2.5% of Finland’s GDP. Travel-related credits in 2016 accounted for
EUR 2.5 billion, an increase of 6% on the previous year.
According to Finland’s tourism accounts the sector employed about 137 800 people in
2015, equivalent to 5.5% of the active working population. It is estimated that tourism will
employ 180 000 people by 2025.
In 2016, accommodation establishments in Finland recorded nearly 20.3 million
overnight stays, of which domestic tourists accounted for nearly 72% (14.6 million) and
foreign tourists for 28% (5.8 million). In 2016, the demand for accommodation services
increased by 3.1%.
Despite a dramatic decrease in the number of overnights by Russian visitors in the
past few years (down 11% in 2016), it is still the primary country of origin in terms of the
number of registered overnight stays in Finland, accounting for 12% of the total. The
number of arrivals from Russia started to increase towards the end of 2016 as the ruble
strengthened against the EUR. Sweden, Germany and the UK were also significant source
markets, accounting for more than half a million overnight stays. In terms of rate of
growth, China was the top performer in 2016, with a 29% increase in overnight stays.

The Ministry of Economic Affairs and Employment is responsible for tourism policy,
legislation, tourism development, international tourism relationships and support measures.
An inter-ministerial working group on tourism meets several times a year to exchange
information on tourism issues and to prepare tourism-related matters for decision-makers. It
is one of the bodies charged with monitoring and implementing Finland’s tourism policy.
The Ministry of Economic Affairs and Employment established a Tourism Cooperation
Group in 2016. This consists of 35 industry leaders from different branches of tourism. Its
main purpose is to identify and prioritise, from an industry perspective, actions to promote
the competitiveness of tourism for inclusion in the next Government Programme.
Visit Finland is an expert agency responsible for promoting Finland in international
markets. Visit Finland and the tourism industry conduct joint product campaigns and
arrange familiarisation trips for foreign tour operators and the media. It acquires market
information for the industry and promotes product development.

Visit Finland is a unit of Finpro Ltd., a provider of internationalisation advisory

services. In 2017 the Government decided that Finpro will merge with the Finnish Funding
Agency for Innovation (Tekes) to form Business Finland. This combined body, which will
begin operations in 2018, will gather under one roof all the services related to the
promotion of innovation funding, exports, investments and tourism.
A key role in providing the physical environment for outdoor and nature based
tourism is played by Metsähallitus, a state-owned enterprise administering more than
12 million hectares of state-owned land and water space, including national parks and
hiking areas. Finland’s 40th national park was created in 2017.
Finland: Organisational chart of tourism bodies

Public Authorities Tourism Organisations
Ministry of Economic Affairs and Employment

- Enterprises and Regional Development Department Visit Finland/ Business Finland
- Promotion of Exports and Foreign Investments
National level
Inter-Ministerial Tourism Industry,

Working Group on Tourism Trade and Labour Market Associations
Regional Tourist and Destination

Regional State Administrative Agencies (6)
Management Organisations
Regional level
Centres for Economic Development, Transport and the

Environment (15)
Regional Councils (18)
Local Tourist Information Offices

Municipalities (311)
Local level Tourism Destinations and Offices
Source: OECD, adapted from the Ministry of Economic Affairs and Employment, 2018.
At a regional level, Regional Councils carry out all legislative implementation, steering
and supervisory functions, while Centres for Economic Development, Transport and the
Environment manage the regional implementation and development tasks of the state
administration. The Centres offer financial, advisory, consulting and training services to
tourism businesses. A sector manager acts as a national expert on tourism for all the regional
Centres. The Centres and Regional Councils will be disbanded in 2020 as part of a process to
reform public sector administration, and new autonomous regions will be founded.
There are also about 30 regional tourism organisations in Finland, and these have
varied objectives, tasks and ownership structures. Locally, tourism issues are handled by
municipalities and local tourist information offices.
There is no separate budget for tourism development in the Ministry of Economic
Affairs and Employment. Visit Finland is funded from the state budget, receiving
EUR 11.9 million in 2017. Support for tourism is also provided directly or indirectly through

the budgets and activities of other ministries, development agencies and the various
regional bodies identified above.
The amount of funding provided by public sources varies from year to year. In 2016,
tourism-related projects received about EUR 19 million from Finland’s Structural Fund
Programme 2014-2020 and about EUR 29 million from the Rural Development Programme
for Mainland Finland 2014-2020.
The importance of tourism for the growth of Finland’s economy is increasingly
recognised by the Government. As a consequence, the Government decided in its mid-term
review in 2017 to allocate additional funding for tourism development. This additional
funding amounts to EUR 16 million for 2018-2019. It will be allocated to supporting
marketing and the work of Visit Finland, enhancing digitalisation in tourism, tackling
seasonality and finding new solutions to workforce supply and demand problems in the
tourism sector. Furthermore, steps to reduce the regulatory burden will be important in
enabling investment and development of tourism facilities.

One of the challenges faced by tourism in Finland over the years is its poor price
competitiveness, with high taxes and labour costs among the main reasons for this. Other
challenges include seasonality, difficulties in finding skilled workers during the high season,
connectivity issues and relatively few functioning travel chains to support growth in tourism.
The current tourism strategy in Finland is the Roadmap for Growth and Renewal in
Finnish Tourism for 2015-2025. The aim is to make Finland the number-one tourist
destination in Northern Europe by 2025. The theme for the roadmap is “Achieving more
together” and its strategic focus areas are:
● Strengthening the theme-based collaboration of tourism centres and networks of tourism
related companies, as well as new openings in product development, sales, and
marketing,
● Developing competitive and diverse offerings from the interfaces of tourism and other
fields,
● Increasing the effectiveness of marketing activities and making travel services easier to
buy,
● Providing a competitive operational environment for tourism that supports growth and
renewal,
● Improving accessibility and functioning supply chains to support tourism growth.
The strategy was reviewed for the first time at the end of 2016, with all quantitative
growth targets exceeded. In the next few years particular emphasis will be given to
digitalisation, seasonality, supply chains, and better understanding emerging markets.
Specific tourism programmes and government initiatives in line with the roadmap
include:
● Finland Air Transport strategy 2015-2030,
● Various cultural policies such as Arts and Cultural Festivals – a cultural resource growing
in strength; Proposal for an action plan 2017-2025,
● The Food 2030 report on food policy, including a specific objective to strengthen food
tourism,

● Finland’s Strategy for the Arctic Region and the related action plan (updated in 2017),
which includes sustainable tourism as one of four priorities. The Arctic sustainable
tourism destination programme will be carried out in 2018-2019,
● Finland’s updated (2017) Baltic Sea Strategy draws attention to the importance of
sustainable and inclusive tourism,
● Growth programmes and theme-based umbrella programmes to strengthen marketing,
networking, product quality and development in different parts of Finland. Growth
programmes for 2015-18 include FinRelax, Finnish Archipelago and StopOver Finland.
National umbrella programmes cover summer activities, cultural tourism and food
tourism.

Statistical profile
Table 1. Finland: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Overnight visitors (tourists) 30 915 | 30 479 28 850 29 160 29 790
Inbound tourism
Total international arrivals 7 636 .. .. 7 529 7 705
Overnight visitors (tourists) 4 226 .. .. 4 858 4 599
Same-day visitors (excursionists) 3 410 .. .. 2 670 3 106
Top markets
Russian Federation 3 578 .. .. 1 023 761
Sweden 702 .. .. 674 642
Estonia 758 .. .. 654 506
Germany 342 .. .. 312 348
China .. .. .. 208 265
Other collective establishments 925 1 022 977 907 853
Outbound tourism
Total international departures 9 980 | 9 530 9 780 10 020 10 280
Same-day visitors (excursionists) 2 310 | 2 330 2 310 2 270 2 390
Top destinations
Estonia 1 682 1 566 1 520 1 720 1 720
Sweden 1 060 930 1 070 860 1 050
Spain 670 700 790 700 830
Germany 490 480 420 540 470
Inbound tourism
Total international receipts .. 3 049 2 764 2 307 2 454 p
International travel receipts .. 3 049 2 764 2 307 2 454 p
International passenger transport receipts .. .. .. .. ..
Outbound tourism
Total international expenditure .. 3 985 3 979 4 305 4 672 p
International travel expenditure .. 3 985 3 979 4 305 4 672 p
International passenger transport expenditure .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933639987

Table 2. Finland: Enterprises and employment in tourism

Number of
establishments
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 31 616 p 120 400 121 000 121 500 122 500 p ..
Hotels and similar establishments 2 097 p 12 900 12 900 12 700 12 200 p ..
Food and beverage serving industry 11 890 p 57 100 57 000 59 400 60 500 p ..
Passenger transport 9 066 p 33 600 34 200 32 000 31 900 p ..
Air passenger transport 81 p 3 500 3 400 3 200 3 100 p ..
Railways passenger transport 76 p 5 200 5 100 4 400 4 400 p ..
Road passenger transport 8 702 p 22 300 23 000 21 500 21 600 p ..
Water passenger transport 207 p 2 600 2 700 2 900 2 800 p ..
Transport equipment rental 318 p 1 100 1 200 1 300 1 300 p ..
1 568 p 1 800 1 700 1 700 1 600 p ..
industry
Cultural industry 3 174 p 5 400 5 400 5 200 5 200 p ..
Sports and recreation industry 3 503 p 8 500 8 600 9 200 9 300 p ..
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933640006
Table 3. Finland: Internal tourism consumption

Million EUR
2014
Total 7 691 4 035 14 165
Accommodation services for visitors 661 410 1 822
Food and beverage serving services 1 354 653 2 007
Passenger transport services 1 495 .. ..
Air passenger transport services 573 .. c ..
Water passenger transport services 209 .. c ..
328 0 478
industry
Tourism connected products 1 365 118 1 814
Non-consumption products 266 75 341
.. Not available; c Confidential data
1 2 http://dx.doi.org/10.1787/888933640025

II. OECD COUNTRY PROFILES – FRANCE
France

Tourism plays a major role in the French economy. The accommodation and food
services sector, representing the largest part of the tourism sector, accounts for between
2.5% and 3% of GDP while the knock-on effects of tourism are also felt in other sectors,
such as transport and leisure. Consequently, the total amount of internal tourism
consumption, which combines tourism-related spending by both French residents and
non-residents, represents around 7.5% of GDP (5% for residents, 2.5% for non-residents).
Direct and indirect employment related to tourism together account for over 2 million
jobs. Tourism is one of the largest contributors to the balance of payments. However,
between 2015 and 2016, the difference between spending by foreign tourists in France and
spending by French tourists abroad fell from EUR 5 billion to EUR 1.8 billion. This unusual
and disappointing result can be explained by the negative fallout from the terrorist
incidents in 2015 and 2016.
Occupancy levels have also been temporarily affected by the terrorist attacks that took
place both in France and in neighbouring countries. Occupancy rates of commercial group
accommodation in mainland France fell by 1.3%. The decline was particularly marked
among foreign visitors (down 5.1% in 2016), with the strongest negative impact on some
Asian markets. This decline was partially offset by domestic travel: resident overnight
stays rose by 0.5% between 2015 and 2016.
International arrivals to metropolitan France fell by 2.2% to 82.6 million in 2016,
following several years of steady growth. However, in terms of tourist inflows, France
remains the world’s leading destination. Around 40% of international arrivals come from
the United Kingdom, Germany and Belgium.
2017 is expected to be a year of solid recovery for the tourism industry in France.
Occupancy statistics for the first three quarters of 2017 have been very positive.

Since 2014, responsibility for the government’s tourism strategy has been shared
between the Ministry for Europe and Foreign Affairs, which promotes France abroad as a
tourist destination, and the Ministry for the Economy and Finance, responsible for regulatory
framework and access to holidays. The public administrations in charge are: the Directorate-
General for Globalisation, Culture, Education and International Development, and the
Directorate-General for Enterprise (DGE). Since July 2016, an Inter-ministerial Tourism
Committee (CIT) has met regularly under the authority of the Prime Minister.
Policy implementation also involves two agencies under State control. Atout France,
which is in charge of developing tourism sector and promoting France abroad, was set up

as an Economic Interest Group to give additional flexibility to its missions and sourcing of
funds. Its budget is over EUR 70 million, around half of which consists of a State subsidy
paid by the Ministry for Foreign Affairs since 2015. The National Agency for Holiday
Vouchers (ANVC) is responsible for broadening access to holidays.
Several layers of regional and local government share the responsibility of boosting
tourism. Each region draws up a regional scheme for the development of leisure and
tourism (Schéma Régional de Développement du Tourisme et des Loisirs (SRDTL) hat sets
medium-term objectives for regional tourism development and determines the terms and
conditions governing policy implementation (Box 1.2).
Tourism benefits indirectly from State spending in other policy areas, including
culture and heritage (museums, renovation of historic monuments, etc.), transport
infrastructure, and the environment. The total financial resources committed to tourism-
related policies amounts to around EUR 2 billion (estimated and presented in a cross-
cutting tourism policy document, appended to the annual draft budget bill).
France: Organisational chart of tourism bodies
Ministry in charge of Economy and Finance Ministry in charge of Europe and Foreign Affairs
State
Directorate-General for Enterprise Directorate-General for Globalisation, Culture,
Education and International Development
Sub-Directorate for Tourism

Tourism Mission
Competitiveness and Tourism Attractiveness Division

Destination
Tourism Development
Development Bureau
Bureau
Promotion and Communication Division
DIRECCTE
Tourism Customers (Regional Directorate International Challenges Division
Tourism Professionals and Welcome Quality
Bureau on Economic Issues)
Bureau
Embassies
Consultative Body
Interministerial Tourism Council and Steering

ATOUT France ANCV
Operators Committee
France’s Tourism Development National Agency for Holiday
(Under the leadership of the Minister in charge of
Agency Vouchers
Foreign Affairs)
Local
Authorities Regions and Regional Departments and Departmental Tourism Municipalities and their associations
Tourism Committees Committees Tourism Offices and their associations
Source: OECD, adapted from the Directorate-General for Enterprise, 2018.

France, despite its natural and cultural resources and reputation for vibrant, artistic
creativity, is subject to increasing competition from other destinations. A high proportion of
international tourists travel to only three French regions which enjoy particularly high visibility
abroad: the greater Paris area, the French Riviera, and the ski resorts of the Rhone-Alps region.
There is a need to shape the French tourist offer and to promote its diversity. At the CIT
meeting in July 2017, the government stated its intention to focus action on six key areas:

● Service quality and site security to ensure tourist satisfaction and destination loyalty.
Key elements will include speedier visa delivery and modernising and promoting the
government’s Qualité Tourisme™ label.
● Coordinating the tourist offer in order to attract a greater number of tourists across France,
including its overseas territories. Key elements will include restructuring segments and
niches, such as waterways tourism, and continuing the “destination contracts” policy
which brings together all parties involved in delivering a local unique offer.
● State support through investment in order to improve quality of offer, and encourage
better connectivity. This will require better deployment of the “France développement
tourisme” fund.
● Training and employment, crucial to the quality of the service offer and a major factor in
combating unemployment.
● Supporting digitalisation and information sharing to increase the global competitiveness of
the tourism industry. Key elements include development of the DATAtourisme project for
open data, support for the France Tourisme Lab incubator network and modernisation of
the economic intelligence observatory, Veille Info Tourisme.
● Promoting access to holidays, especially for families, seniors and those people living
with a disability, represents both a social objective and a factor in enhancing the
competitiveness of destinations. Increasing accessibility will require modernisation and
revamping of the brands Tourisme et Handicap and Destination pour tous (Box 1.17).
Several priority projects were launched at this meeting, including the aim to deliver
visas within 48 hours for ten new countries by June 2018; cutting clearance times for
airport border control to 30 minutes for EU nationals and 45 minutes for all other arrivals
as of 1 January 2018; and establishing a maintenance programme for motorways between
airports in the greater Paris area and the capital.
CIT also agreed on a new form of governance, setting out a method for inter-ministerial
coordination. Regular meetings are to be scheduled over several years, with pre-defined
agenda items, such as the rehabilitation of leisure properties and financing of promotion
activities. These high-level discussions will allow in-depth preparatory work to be carried out
by the administrations concerned, leading to implementation of concrete measures.
Three different steps taken by government illustrate the priority given to tourism.
● Following the recent terrorist attacks the Minister for Foreign Affairs called two emergency
meetings for tourism (July and September 2016), which allowed industry professionals to
present their concerns and voice their expectations. After the second meeting, the
government unlocked EUR 10 million of special funding to step up the promotional
activities of Atout France – who were asked to match approximately the same amount
through other sources. This emergency plan was established by the end of 2016
and implemented during 2017, and these efforts partly explain the recovery experienced
in 2017.
● An innovative form of State intervention, in the form of “destination contracts”, which are
designed to rally public and private stakeholders in a given territory around inspiring
themes, with the aim of creating and promoting an attractive, intelligible offer for national
and international audiences. Each destination contract sets out the commitment of public
authorities, institutional and private tourism stakeholders to a shared tourism strategy, by
means of actions which focus on the attractiveness of the offer, service quality and

promotion to target international markets. The destination contract brings together local
and national tourism strategies. The investment of State money is modest, but has a
positive ripple effect on other actors’ contributions, creating therefore a considerable
leverage. Twenty-two destination contracts were selected following calls for projects in
October 2014 and June 2015.
● Developing appropriate regulatory responses to the increased use of digital platforms,
and in particular those affecting tourist accommodation. Accommodation in private
homes has become a major share of the national offer, especially in cities. In an effort to
avoid obstructing the development of a dynamic new economy in furnished tourist
rentals, whilst protecting fair competition with the hotel sector, and increasing the
accountability of digital platforms, France has opted to take a regulatory approach. Two
measures, Article 51 of the Law of 7 October 2016 for a Digital Republic, and the decree of
28 April 2017 on the registration of certain furnished rentals in areas where housing is
scarce, aim to strike a balance between the various interests at play and clarify the tax
and social obligations of players in the sharing economy for furnished rentals.
Diversifying the tourism offer in France with a focus on niche markets

The state, by activating niche networks, and with limited financial investment, can help
structure and diversify the tourism offer. For instance, the expansion of bicycle tourism
was supported by the development of the national website www.francevelotourisme.com,
and the Accueil Vélo brand, awarded to accommodation providers, tourist offices, bicycle
rental companies and visitor sites that cater to cyclists and meet precise criteria. Wine
tourism is also recognised as having the potential to make a significant contribution to the
development of rural tourism in France. Tourist activities around the wine routes are
diversifying. The Vignobles & Découvertes brand, initiated by the ministers in charge of
tourism and agriculture, labels territories structured around the discovery of a remarkable
vineyards, with the aim of bringing more accessibility to customers and more visibility to
the destination. To date, 67 destinations have received the label. Atout France has created
an information website dedicated to wine tourism (www.visitfrenchwine.com).

Statistical profile
Table 1. France: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
United Kingdom 12 134 12 549 11 751 12 236 11 938
Germany 12 564 13 393 12 909 11 478 11 389
Belgium 10 365 9 320 9 257 9 614 9 487
Italy 7 388 7 171 7 358 7 594 6 731
Switzerland 6 092 6 499 6 480 6 010 6 035
Outbound tourism
Top destinations1
Spain 3 796 3 776 4 182 4 430 4 206
Italy 2 505 2 693 2 948 3 175 3 027
Belgium 1 410 1 589 1 824 1 822 1 613
Great Britain 1 595 1 678 1 965 1 668 1 813
Portugal .. .. 1 140 1 243 1 397
Inbound tourism
International passenger transport receipts .. 7 231 6 753 7 319 ..
Outbound tourism
International passenger transport expenditure .. 7 729 7 280 7 601 ..
1. Belgium, including Luxembourg. United Kingdom, including Ireland.
1 2 http://dx.doi.org/10.1787/888933640044

Table 2. France: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. 1 251 620 1 246 515 1 254 401 1 270 100 1 301 399
Tourism industries 276 280 1 242 016 1 236 710 1 244 527 1 260 515 1 292 274
Hotels and similar establishments 23 823 172 982 170 231 171 813 171 774 172 274
Air passenger transport 543 67 922 65 298 63 691 61 376 60 695
Railways passenger transport 21 168 187 167 082 166 149 165 017 163 384
Road passenger transport 3 746 31 022 32 466 33 695 35 286 36 529
Water passenger transport 848 9 629 9 834 10 022 10 024 9 970
Transport equipment rental 5 709 13 503 13 250 13 135 13 347 13 422
7 791 47 247 46 635 45 749 45 471 44 903
industry
Cultural industry 781 12 366 12 575 12 615 12 834 12 879
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640063
Table 3. France: Internal tourism consumption

Million EUR
2015
Total 89 973 p 49 725 p 158 606 p
Consumption products 84 238 p 48 519 p 151 665 p
Tourism characteristic products 59 566 p 33 638 p 112 112 p
Railways passenger transport services 6 438 p 1 484 p 7 922 p
Water passenger transport services 406 p 99 p 505 p
Transport equipment rental services 1 356 p 758 p 2 113 p
6 524 p 1 044 p 7 568 p
industry
Cultural services 1 149 p 1 242 p 2 391 p
Other consumption products 24 672 p 14 881 p 39 553 p
Non-consumption products 5 735 p 1 206 p 6 941 p
1 2 http://dx.doi.org/10.1787/888933640082

II. OECD COUNTRY PROFILES – GERMANY
Germany

The growing tourism sector in Germany generates over EUR 105 billion in gross value
added, equivalent to 3.9% of total GVA. Indirect effects are estimated to account for an
additional EUR 76.1 billion. Over 2.9 million workers are directly employed in the tourism
industry, equivalent to 6.8% of total employment.
International tourism receipts accounted for 3% of total exports in 2015. 80.8 million
international visitors stayed overnight in Germany in 2016, an increase of 1.4% on 2015.
The three main source markets are the Netherlands, Switzerland and the United States.
In 2016, there were 447.2 million overnight stays in accommodation facilities with ten
beds or more (including camping), up 2.5% on the previous year. Domestic tourism
accounts for 82% of these stays. Visitor spending exceeded EUR 287 billion in 2015, with
EUR 224.6 billion (78%) of tourism revenue arising from domestic tourism, whereas visitors
from abroad spent EUR 39.6 billion (14%).

The Federal Government is primarily responsible for establishing an appropriate policy
environment for tourism, with the 16 Federal States (Länder) developing, shaping and promoting
tourism policy. The Federal Länder-Committee on Tourism meets twice a year, fostering the
exchange of information and coordination of measures involving two or more of the Länder.
The Federal Minister for Economic Affairs and Energy (BMWi) has lead responsibility
for tourism policy. The Federal Government’s Commissioner for the New Federal States
(Länder), SMEs and Tourism serves as the government’s central point of contact within the
Federal Government and with the German Parliament (Bundestag), especially with the
Parliamentary Tourism Committee. The Federal Minister for Economic Affairs and Energy
is supported by the Advisory Council on Tourism Issues, which brings together the
interests of government, commerce, academia, trade unions and others.
The Länder ministries responsible for tourism devise, implement and fund policies to
promote tourism development. Local tourism offices coordinate the work of small, local
enterprises, promote product design and undertake relevant marketing activities. Each of
the Länder has a tourism association representing the interests of regional and local/
municipal organisations and/or a destination marketing organisation.
The German National Tourist Board (GNTB) is responsible for the marketing of
Germany overseas. GNTB works closely with the tourism marketing organisations of the
Länder and co-operates across the world with the German Chambers of Commerce Abroad,
the German foreign missions, Germany Trade & Invest (Federal economic development
agency), as well as the Federal cultural institutes (Goethe Institut).

Germany: Organisational chart of tourism bodies
Federal Ministry for

German Social Partners (Trade
Economic Affairs and Tourism industry Academic
Parliament unions, chambers of
Energy associations/ enterprises Institutions
(Bundestag) industry/commerce)
Parliamentary
Tourism Federal Commissioner for the New
Committee Federal States, SMEs and Tourism
Parliamentary
State Secretaries
and State
Secretaries
Directorate
General for SME Advisory Council on Tourism Issues
Policy
Directorate for
Overall SME German National Ministries responsible for Tourism of
Policy and Tourist Board the 16 Federal States
Services
Joint Federal / State

Tourism Policy Committee for
Division Tourism
Source: OECD, adapted from the Federal Ministry for Economic Affairs and Energy, 2018.
Budgetary funds available to BMWi for tourism are concentrated in two main areas:
● Institutional support for the GNTB. Since 2015, this has increased by EUR 1.6 million to
around EUR 30.6 million a year, with the additional funds channelled inter alia into
strengthening activities to target emerging source markets in Asia, particularly China,
India and Arab Gulf States, as well as establishing new DZT agencies in locations well
placed for additional source markets.
● Promotion of projects to enhance the performance of tourism, amounting to EUR 1.6 million
in 2017.
The Joint Federal Government-Länder Scheme for Improving Regional Economic
Structure (GRW) is the central instrument of the Federal Government’s regional policy. The
GRW project funding is provided through investments in trade and industry, including the
tourism economy, and municipal investments in economic infrastructure, including basic
infrastructure for tourism. The average portion of the GRW budget set aside for investment
in the tourism industry and tourism infrastructure has been 14% over the past five years, an
annual average of EUR 167 million (divided evenly between federal and Länder contributions).
Other federal ministries fund measures and projects in their respective policy fields which
benefit tourism in Germany.
Finance for tourism at municipal, regional, and Länder level derives from a range of
different sources. In addition to public funds, revenue is generated from spa and tourism
taxes, as well as from bed taxes.

The focus is on supporting small and medium-sized enterprises (SMEs) in the tourism
industry so that they can develop their competitive position and realise their potential for
growth and employment.

Competition for skilled professionals has intensified across the entire economy and is
impacting the continued development of tourism. The tourism industry reports declining
numbers of trainees, comparatively high drop-out rates, and high staff turnover levels. It is
a challenge to make the industry attractive to the next generation.
The German government’s tourism policy focuses not only on economic goals, but also on
social and structural aspects. One of the biggest challenges is to enable the rural regions,
especially economically weak regions, to reap greater benefits from tourism and to provide
opportunities for rural enterprises to benefit from the growing tourism sector. Through
strengthening local retail demand and using public facilities, tourists help to maintain local
infrastructure and income in rural areas, and contribute to the development of entire regions.
Cultural tourism is a hallmark of tourism in Germany and many cultural destinations,
mainly cities, attract tourists based on their museums, theatres, castles and palaces. Yet
there is untapped potential in more remote regions, where traditions and customs provide
variety in travel experiences.
BMWi is taking a fresh approach with its project The Destination as a Stage: How can
Cultural Tourism Make Rural Areas Successful?. Five rural regions, each with a different level
of tourism sophistication, are being coached to function as role models for other regions by
demonstrating the benefits of the connection between culture and tourism, inspiring other
destinations to develop their own initiatives. This work will continue into 2018.
Accessibility for all remains a tourism policy priority in Germany, including the
provision of comprehensive and reliable information concerning barrier-free offers along the
tourism service chain for people with disabilities. The “Tourism for All” project is funded by
BMWi to support the creation of a nation-wide labelling and certification system (Box 1.17).
Digitisation is an increasingly important issue and smaller businesses especially are
struggling to keep up. BMWi is conducting a study on the role of the sharing economy,
analysing the market for sharing business models and their macroeconomic effects. The
study will consider the need for regulatory action for private accommodation booking
platform, with final results available in the first half of 2018.
In addition to a broad approach to sustainability, measures are in place with a strong
focus on environmental sustainability. As part of a project on energy-efficient buildings
conducted by BMWi in co-operation with the German Energy Agency (dena), the Check-in
Energy Efficiency pilot project was initiated in 2015 to demonstrate an economic, ecological
and socially acceptable strategy for hotels and hostels of the future. 30 participating hotels
and hostels have been given expert energy-efficiency advice.
Sustainable Destinations
A German Tourist Association research project has produced guidelines for tourism
destinations wishing to become increasingly sustainable. Sustainable tourism concepts
protect the environment and nature while at the same time securing an economic future
in their regions, ensuring quality of life and establishing identity. In order to attract more
attention to sustainability in the tourism sector, a national competition was launched for
the most sustainable tourism destination in Germany, based on 40 ecological, economic,
social and management-related criteria. The Swabian Alb Biosphere Reserve was declared
the winner in 2017, with further awards in specific categories. Finalists were rewarded
through their inclusion in a national advertising campaign at train stations.

Statistical profile
Table 1. Germany: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Netherlands 4 200 | 4 124 4 238 4 326 4 477
Switzerland 2 500 | 2 594 2 778 3 027 3 115
United States 2 300 | 2 310 2 371 2 534 2 558
United Kingdom 2 200 | 2 294 2 415 2 560 2 551
Italy 1 600 | 1 581 1 642 1 715 1 652
Outbound tourism
Overnight visitors (tourists) 82 729 87 459 83 008 83 737 ..
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933640101

Table 2. Germany: Enterprises and employment in tourism

Number of
establishments2
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 206 595 1 539 614 1 510 843 1 651 162 1 728 462 ..
Accommodation services for visitors .. 1 495 1 416 1 560 1 621 ..
Hotels and similar establishments1 33 645 .. .. .. .. ..
Food and beverage serving industry 131 845 1 020 163 968 109 1 079 064 1 136 031 ..
Air passenger transport 552 55 662 51 805 57 381 58 382 ..
Water passenger transport 580 6 433 6 606 8 373 8 867 ..
11 971 89 723 97 611 93 078 100 254 ..
industry
.. .. .. .. .. ..
.. Not available
1. Data for hotels and similar establishments refer to number of establishments.
1 2 http://dx.doi.org/10.1787/888933640120
Table 3. Germany: Internal tourism consumption

Million EUR
2015
Total .. .. ..
Tourism characteristic products .. .. ..
Road passenger transport services 12 802 928 13 730
Water passenger transport services 1 131 415 1 546
12 408 .. 12 408
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933640139

II. OECD COUNTRY PROFILES – GREECE
Greece

Tourism is a central pillar of the Greek economy. In 2016, direct tourism GVA was
estimated to be EUR 9.6 billion, which represented 6.4% of national GVA. In the same year,
tourism directly supported nearly 366 000 jobs, accounting for approximately one in ten
jobs in Greece.
In 2016, Greece received a record number of international tourist arrivals for the fourth
consecutive year, totalling 28 million visitors, an increase of 7.5% on 2015. Overnight stays
in Greece totalled 193.4 million, up by 2.9% from 188 million in 2015. Visits from EU
countries accounted for 61.3% of all arrivals and saw an overall growth of 15% in 2016. In
the same year, as far as the cruise sector is concerned, 4 093 cruise ship arrivals (4 375 in
2015) were recorded, while the number of cruise passenger visits was stable at 5.1 million.
Domestic tourism in Greece was estimated to account for 5.8 million trips and
57 million overnight stays in 2015 (down 10.2% from 2014). The vast majority of these trips
(over 90%) were for leisure purposes, however, nearly two-thirds (64%) of total trips and
over three-quarters (78.4%) of total nights were spent in non-commercial accommodation.

Acknowledging the importance of tourism as a crucial factor in the Greek economy, a
separate Ministry of Tourism was established in November 2016. The Ministry formulates
the country’s tourism policy, introduces legislative reforms, undertakes tourism planning
and coordinates activities with other ministries in order to boost investment and improve
the quality and competitiveness of Greek tourism. A number of directorates are responsible
for the various functions of the Ministry. Within this structure, the National Strategic
Reference Framework Executive (NSRF) reports directly to the Secretary General for Tourism
Policy and Development, and contributes to the formulation of proposals which lead to
specific tourism projects.
The Greek National Tourism Organisation (GNTO) is a public entity under the
supervision of the Ministry. Its mission is to organise, develop and promote Greek tourism,
within the country and worldwide, utilising its 16 overseas offices.
The Hellenic Chamber of Hotels is the state’s institutional consultant and the
competent authority responsible for the official classification of hotels, rooms and
apartments for rent.
The Ministry of Tourism has 14 Regional Tourism Offices, located in each region, which
have responsibility for licensing and inspecting tourism businesses, conducting quality
control, monitoring official classification and imposing administrative sanctions on
tourism businesses.

At the local level, Regions and Municipalities design and implement programmes and
activities for tourism development and promotion. These activities are not financed by the
central government; local authorities make use of their own resources or European
programme funds. Regarding tourism promotion activities in particular, it is mandatory for
all public (national or local) authorities to obtain prior approval from the GNTO, with a view
to harmonising tourism promotion campaigns with the overall tourism promotion strategy
of the country.
In 2016 the budget of the Ministry of Tourism was EUR 49 million. Of this,
EUR 26 million comes from the regular budget, with a further public investment budget
made up of approximately EUR 10 million from national sources (used for promotional
activities by GNTO), and EUR 13 million from EU co-financing (used for innovation,
infrastructure, projects, skills and SME support).
Greece: Organisational chart of tourism bodies
Minister of Tourism Greek National Tourism Organisation (GNTO)
Press and Public Relations Office Department of Parliamentary

Unit for Internal Auditing Control
Special Service for the
Secretary General- Sectoral for Promotion and Licensing of
Secretary General-
Tourism Policy Tourism Enterprises
Administrative for Tourism
and Development
NSRF Executive Structure
Directorate General for Financial
and Administrative Affairs
Directorate General for
Department for Civil Emergency Tourism Policy
Planning
Regional Tourism Units

Directorate for Financial Affairs
Directorate of Strategic
Directorate for Administration Affairs Planning
Directorate for Tourism Education and Directorate of Research

Training
Directorate of Quality
Tourism Education and Training Units Standards
and Tourist Guides Schools
Directorate of Spatial
Directorate for Planning and Infrastructure
Legislative Coordination and Better
Regulation
Source: OECD, adapted from the Ministry of Tourism, 2018.

Since 2015 the Ministry of Tourism has been implementing a New Tourism Policy to
promote Greece as a globally attractive destination offering unique and authentic travel
experiences, 365 days a year. All initiatives are geared towards increasing international travel
share, further enriching the tourism offer, and enhancing competitiveness. The strategic
pillars are:
● Extending the tourism season by innovative product development in close co-operation
with all 13 Regions.

● Promoting new thematic tourism products and special interest tourism with an emphasis
on cultural tourism, pilgrimage tourism, cruises, yachting, diving parks, wellness and
spas, medical tourism, MICE, luxury tourism, city-breaks, and Greek gastronomy.
● Targeting new dynamic source-markets (Middle East, China, South Korea, and as of 2017
India) while enhancing Greece’s presence in traditional markets in Europe, Russia and
the United States.
● Increasing air connectivity/direct flights from central and regional foreign airports to
existing and new destinations in Greece.
● Attracting investments of high quality and added value to upgrade the overall tourism
product and accommodate the expected increase in demand in the coming years.
● Creating and promoting synergies with other economic sectors (e.g. agri-food, manufacturing).
In response to this strategy, a number of specific actions have been implemented to
increase tourism flows and lengthen the season. For example, the Minister of Tourism
supported the introduction of a direct year-round Athens-New York service by Emirates,
which is expected to generate consistently high demand and enhance business, culture
and leisure connections on both sides of the Atlantic.
In the field of tourism education and training, the core priorities are to provide:
● Tourism enterprises with qualified personnel in order to increasingly improve the
quality of the services provide.
● Unqualified employees with opportunities to acquire the necessary skills in order to be
more productive and competitive in the labour market.
● Incentives to tourism enterprises to hire qualified personnel.
● Quality education to tourist guides.
Tourism product innovation and upgrade involve:
● Pursuing the proper utilisation of funding instruments available within the framework of
the NSRF.
● Regulating the licensing and general functioning of different types of tourism businesses
(including lodgings, ski centres, mountain shelters, thermal establishments, travel and
tourism agencies, and chauffeuring services), through a set of Joint Ministerial Decisions.
● Streamlining the legal and regulatory framework concerning domestic and foreign
investment. To this end, a comprehensive “Codification of Tourism Legislation” was
completed and implemented, with the purpose of reducing administrative-regulatory
barriers, improving the business environment, and thereby promoting transparency and
increased investment in the tourism sector (Box 1.18).

Statistical profile
Table 1. Greece: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Specialised establishments 956 537 609 481 528
Inbound tourism
Total international arrivals 16 947 | 20 111 24 272 26 114 28 071
Top markets
Germany 2 109 | 2 268 2 459 2 810 3 139
United Kingdom 1 921 | 1 846 2 090 2 397 2 895
Bulgaria 599 | 692 1 535 1 901 2 523
Former Yugoslav Republic of Macedonia 1 300 | 1 692 2 347 3 023 1 721
Italy 848 | 964 1 118 1 355 1 387
Outbound tourism
Top destinations
Former Yugoslav Republic of Macedonia 1 185 1 393 1 800 1 979 1 923
Bulgaria 509 536 751 1 109 1 557
Turkey 533 524 716 652 803
Germany 417 357 469 400 444
Italy 286 310 292 297 364
Inbound tourism
International travel receipts 10 443 e 12 152 13 393 14 126 13 207 p
International passenger transport receipts 850 1 016 1 259 1 443 ..
Outbound tourism
International travel expenditure 1 844 e 1 835 2 076 2 037 2 006 p
International passenger transport expenditure 388 1 002 937 1 154 ..
1 2 http://dx.doi.org/10.1787/888933640158

Table 2. Greece: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Food and beverage serving industry .. 205 235 198 122 220 539 249 681 261 484
Road passenger transport 6 521 .. .. .. .. ..
Transport equipment rental .. 2 496 2 083 2 205 4 002 3 921
5 170 11 920 13 287 21 328 19 005 20 872
industry
.. .. .. .. .. ..
Other country-specific tourism industries 40 .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640177

II. OECD COUNTRY PROFILES – HUNGARY
Hungary

According to the latest Tourism Satellite Account (2013), the direct contribution of
tourism to the country’s GDP is EUR 5.0 billion (6.1% of total) and the industry employs
346 000 people (9.1% of the workforce). If indirect contributions are included, tourism
accounts for 9.8% of GDP (up from 9% in 2009) and provides 12% of total employment.
2016 was an exceptional year for the tourism sector. In total, Hungary welcomed
11.1 million guests in commercial accommodation, spending 27.6 million guest nights in
2016. This reflects an increase of 6.9% and 6.7% respectively compared to the previous year.
The gross revenue of commercial accommodation establishments (including all services)
grew by 9.4%.
International and domestic tourism both performed well, with 5.8 million domestic
(up 6.2% on 2015) and 5.3 million international arrivals (up 7.6%) in commercial
accommodation, with each group spending almost 14 million nights, an increase of 7% and
5.5% respectively on 2015.
Hungary’s top three inbound markets by guest nights in 2016 were Germany, United Kingdom
and Austria. While there was a slight decrease in guest nights from Germany (down 2.2%),
those attributable to neighbouring countries such as the Slovak Republic (up 19.8%), the
Czech Republic (up 17.8%) and Romania (up 16.4%) increased significantly from 2015.

In 2016-2017, there have been significant structural changes in the Hungarian tourism
administration. Government responsibility for tourism was transferred from the Ministry
for National Economy to the Ministry of National Development in April 2016. The national
tourism administration and the traditional promotional tasks of the former Hungarian
Tourism Ltd. were integrated into the newly established Hungarian Tourism Agency (HTA),
operating under the supervision of the Ministry of National Development.
The main tasks of the HTA include: i) tourism policy making, ii) development and
implementation of long-term tourism development strategies, iii) coordination of tourism
developments in the designated tourism regions, iv) management of tourism related EU funding,
and v) promotion of Hungary to international and domestic markets. Other tasks include:
● Monitoring: researching and analysing trends in the tourism sector on both the national
and international level and their impact on Hungary,
● Communication: informing stakeholders about the performance of the sector, development
opportunities, research findings and other information,

● Quality Assurance: introducing, developing and operating quality systems in the sector
(trademarks, awards, etc.),
● Implementation: making priority tourism investments,
● Innovation: supporting the establishment of new products, business models and services,
● Incentives: planning and ensuring the effective use of grants and other financial resources
for tourism projects and for the development of innovative grant schemes,
● Education: suggesting necessary developments in the higher education sector concerning
tourism.
Since July 2017, international tourism relations have been managed by the Ministry of
Foreign Affairs and Trade, under the supervision of the Ministerial Commissioner for
International Tourism Relations. This includes bilateral arrangements (e.g. tourism
working groups, joint economic commissions), representing Hungary in regional groupings
(e.g. Visegrád Group, China-CEEC tourism co-operation), and co-operation with international
organisations (e.g. OECD, UNWTO).
Hungary: Organisational chart of tourism bodies
Ministry of National Development Ministry of Foreign Affairs and Trade
Ministerial Commissioner for International

Hungarian Tourism Agency
Tourism Relations
¾ Public administration of tourism ¾ Co-operation with international organizations

¾ National tourism promotion ¾ Regional and multilateral co-operation
¾ Foreign representation offices ¾ Bilateral relations
(only on major source markets) ¾ Tourism attaché network
¾ Coordination of tourism developments
Source: OECD, adapted from the Ministry of National Development and Ministry of Foreign Affairs and Trade, 2018.
Tourism is considered a strategic priority for the Hungarian Government. This has
been underlined by the quadrupling of the budget allocation for tourism from 2016 to 2017,
to almost EUR 70 million. Of this, EUR 36.7 million is dedicated to the operation and
promotional activities of the HTA and EUR 33 million to quality developments in tourism.
As a further sign of support for the industry, VAT in the catering sector is being
reduced in two stages. Since January 2017, the VAT was reduced from 27% to 18%. In 2018,
the VAT on catering will reduce further to 5%, but relevant companies will be obliged to pay
a 4% contribution to a dedicated fund which will be used to support tourism promotional
activities. In addition to the preferential VAT rate for accommodation services, the VAT on
tickets to festivals has been lowered to 18%.
In 2018, even more state funding (nearly EUR 173 million) for tourism development is
planned. Together with the support of EU co-financing, in the financial period of 2014-2020,
more than EUR 1.6 billion will be devoted to tourism development in Hungary.


The Government objectives for tourism are based on seven pillars:
● Destination based product and attraction development,
● Effective promotion and personalised marketing communication,
● Dedicated professionals and professional hospitality,
● Reliable data and measurable performance,
● Transparent, objective regulation and incentives,
● Governance and co-operation with industry, academic and other governmental stakeholders,
● Strengthening the Hungarian identity and attachment to homeland.
Based on legislation introduced in 2016, a new approach to tourism development has
been introduced in Hungary, based on the identification of priority areas as the basic units
for the planning of tourism development. Tourism in Hungary over the past decade could be
characterised as product based, singular developments in different tourist regions. The new
approach involves the concentration of development activities in designated areas based on
current or potential tourism performance, coordinated by a single governmental body
instead of various institutions. To ensure focused and sustainable tourism development, the
Hungarian Tourism Agency in co-operation with local municipalities and stakeholders is
now responsible for coordinating all publicly funded investments in identified priority areas
for tourism development.
To date, five tourism development areas have been identified – Dunakanyar, Lake
Balaton, Sopron-Fert , Debrecen and Tokaj – with other areas in the pipeline. Within these
priority areas, the key tasks are to:
● Prepare a unique development program with the necessary allocation of resources,
● Renew or develop the destination brand for the area, as a basis for attracting visitors and
influencing the development of suitable products and experiences.
The creation of priority tourism development areas affects the labour market and
vocational training needs of the regions. It has been necessary to determine the quantity of
labour and the types of skills required to sustain the planned tourism development areas.
In 2017, the National Tourism Development Strategy 2030 was introduced as the core
document defining targets and methods for the management of tourism up to 2030. The
document covers every future sub-strategy and programme in the tourism sector, and
defines the short-, medium- and long-term tasks by identifying key intervention points
and strategic goals. It puts great emphasis on the newly introduced destination-based
approach, as well as the new concept behind state-supported attraction development and
the development of basic infrastructure.

Statistical profile
Table 1. Hungary: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Romania 591 589 758 1 583 2 299
Germany 2 201 1 832 1 898 1 899 1 783
Slovak Republic 436 639 1 024 1 533 1 476
Austria 942 793 976 1 088 997
Czech Republic 320 494 748 792 833
Outbound tourism
Top destinations
Austria 571 602 741 818 848
Germany 610 640 686 812 956
Slovak Republic 226 356 476 642 674
Romania 432 362 437 619 793
Czech Republic 324 398 522 473 544
TOURISM RECEIPTS AND EXPENDITURE, MILLION HUF
Inbound tourism
Total international receipts 1 385 421 1 493 256 1 741 464 1 941 282 1 591 365 p
International travel receipts 1 139 211 1 200 364 1 365 918 1 492 619 1 591 365 p
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933640215

Table 2. Hungary: Enterprises and employment in tourism

Number of
establishments1
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 177 413 338 049 346 370 .. .. ..
Accommodation services for visitors 33 800 40 817 37 806 .. .. ..
Food and beverage serving industry 36 374 113 429 114 376 .. .. ..
Passenger transport 10 620 75 184 78 889 .. .. ..
Air passenger transport 123 .. .. .. .. ..
Railways passenger transport 3 24 104 25 882 .. .. ..
Road passenger transport 10 360 45 297 48 776 .. .. ..
Water passenger transport 134 .. .. .. .. ..
Passenger transport supporting services 4 528 16 642 24 044 .. .. ..
Transport equipment rental 4 517 .. .. .. .. ..
3 202 6 069 7 270 .. .. ..
industry
Cultural industry 40 563 39 831 34 150 .. .. ..
Sports and recreation industry 21 429 21 019 20 500 .. .. ..
.. .. .. .. .. ..
Other country-specific tourism industries 22 380 16 642 28 603 .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640234
Table 3. Hungary: Internal tourism consumption

Million HUF
2013
Total .. .. ..
Consumption products 558 672 890 944 1 449 615
Railways passenger transport services 10 088 1 515 11 602
Passenger transport supporting services 5 179 13 450 18 629
19 122 6 494 25 616
industry
Country-specific tourism characteristic services 8 187 68 355 76 542
.. Not available
1 2 http://dx.doi.org/10.1787/888933640253

II. OECD COUNTRY PROFILES – ICELAND
Iceland

Iceland has been experiencing a tourism boom, with arrivals growing annually on
average by 24.4% since 2010, far exceeding forecasts. Iceland received 1.8 million international
tourists (overnight visitors) in 2016, representing a 39% increase on 2015. 2.3 million
international tourists are estimated for 2017.
Tourism has played a major role in Iceland’s economic recovery and growth in recent
years, building an unprecedented surplus in foreign trade and creating new businesses and
jobs. It is now the major export sector, accounting for ISK 462 billion (39%) of total foreign
currency revenue in 2016; more than fisheries and aluminium combined. The total direct
number of employees in activities related to tourism was around 25 000 in 2016, 14% of the
Icelandic workforce. Tourism’s direct contribution to GDP was 8.4% in 2016.
The top three source markets by volume are the United States, the United Kingdom
and Germany, with especially strong growth from North America, the United Kingdom and,
most recently, China. The diversification of inbound markets has contributed to reduced
seasonality. The domestic market of approximately 340 000 inhabitants is relatively stable,
with domestic overnight stays totalling 1 million in 2016.

The Ministry of Industries and Innovation is responsible for tourism. The Icelandic
Tourist Board (ITB) handles the implementation of tourism affairs on behalf of the Ministry,
including:
● Issuing licenses, registration and monitoring operational requirements,
● Development and organisational issues related to tourism, including implementing a
defined tourism strategy,
● Regional and local development, with a focus on the development of Destination
Management Plans (DMPs),
● Responsibility for running the official quality and environmental system within Icelandic
tourism (VAKINN), the Tourist Site Protection Fund, and the collection of data on tourist
numbers, expectations and experiences.
Marketing and promotion is the responsibility of Promote Iceland, an agency under
the Ministry for Foreign Affairs. Promote Iceland is a public-private partnership whose
goals are promoting Iceland as a tourism destination, assisting in the promotion of
Icelandic culture abroad, and introducing Iceland as an attractive option for foreign direct
investment. Visit Iceland is part of Promote Iceland and is the official destination
marketing office for Iceland, aiming to attract visitors to the country.

The Icelandic Tourism Council is appointed by the Minister of Tourism, Industry and
Innovation and advises the Minister on matters concerning tourism. The Council
comments on amendments to tourism-related legislation and regulations and on other
matters assigned to it by the Minister or that it deems appropriate in the interests of the
tourism industry. The Tourism Council brings together representatives from the Ministry,
the Icelandic Travel Industry Association, the Icelandic Association of Local Authorities,
the Iceland Tourism Association and Promote Iceland.
A specific Tourism Task Force was established in 2015 and charged with implementing
a Road Map for Tourism in Iceland. The Task Force includes various ministries (responsible
for tourism, finance, environment, natural resources, transport and local government) and
representatives of the industry and local authorities. The Task Force is set to operate
temporarily until 2020.
Municipalities are responsible for planning issues and many tourist attractions. With
the support of the Icelandic Regional Development Institute, regional associations of
municipalities operate Developmental Agencies, and have implemented various tourism
development projects. Seven regional marketing offices work on promoting tourism to the
regions. They collaborate extensively with both Promote Iceland and the Icelandic Tourist
Board, which provides financial support for their work.
Iceland: Organisational chart of tourism bodies
Ministry of Industries
Ministry for Foreign Affairs
and Innovation
Tourism Council
Icelandic Tourist Board Promote Iceland

(National Tourism Authority) (Overseas marketing and promotion)
Source: OECD, adapted from the Ministry of Industries and Innovation, 2018.
In 2017 the overall public budget allocated to tourism was ISK 1.7 billion. The main
source of funding is through the general budget. Besides the general budget, 60% of the
accommodation tax goes directly to the Tourist Site Protection Fund. The overall budget
allocated to tourism is divided between three main organisations and funds. In 2017 the
division was as follows: The Icelandic Tourist Board ISK 373.8 million, the Tourist Site
Protection Fund ISK 576 million, while a budget of ISK 761.4 million was allocated to
tourism services (of which ISK 390 million was for marketing and promotion).

The central challenge for Iceland is to maximise the gains from tourism for the
population while protecting the assets upon which tourism is built. Sustained and rapid
tourism growth in Iceland is putting increased pressure on nature, infrastructure and
society. Tourism planning, infrastructure investment (e.g. roads, sanitary facilities, site
facilities, housing, tourist information provision), and managing visitor flow at the most

popular natural sites, are key priorities. A more recent issue is the exchange rate
appreciation that may affect Iceland’s price competitiveness as a destination and thus
tourism demand and travel patterns. Tourism’s contribution to climate change is yet
another concern.
Iceland’s Road Map for Tourism 2015-2020 emphasises seven core issues: Coordinating
management of tourism, ensuring positive visitor experiences, improving data reliability
and comparability, promoting nature conservation, improving skills and quality, increasing
profitability, and furthering the distribution of tourists around the country.
Actions defined in the Road Map are well underway with several initiatives implemented
specifically to improve tourism management and distribution (Box 1.6), including:
encouraging direct international flights to airports outside of Reykjavik; the development of
Destination Management Plans for each region; reforms to the Tourist Site Protection Fund
(Box 3.8) and new National Infrastructure Plan to improve the efficiency of infrastructure
development at major tourist sites; and increased funding for the promotion of safe and
responsible travel behaviour through marketing and information campaigns.
Destination Management Plans in Iceland

The Icelandic Government is aware of the need for destination management and
planning for the future sustainable development of tourism. In 2015 the Icelandic Tourist
Board (ITB), along with the Tourism Task Force, launched the development of Destination
Management Plans (DMPs). This holistic approach takes into account the planning and
coordination of development and management of tourist flows in each region and
strengthens the local tourism support frameworks.
DMPs are joint policy statements intended to steer growth and development of areas
over a certain amount of time, define stakeholders’ roles, and specify certain actions that
each stakeholder is responsible for, and the resources that they need to carry out their
responsibilities.
The DMP project divides Iceland into seven different regions. The regional marketing
offices carry out the development of the DMPs in each region, with ITB overseeing the
project. The final product will be a plan including a shared vision of all stakeholders for
tourism development in the region and a prioritised three year action plan on how to
deliver that vision. Each project within the action plan has set milestones and a budget
plan where the responsibilities and contribution of all stakeholders are clearly stated. The
first DMP plans will be ready in spring of 2018 and will be revised every three years.
To ensure coordination in all layers of public planning, the DMPs will act as a very
important compass both for regional plans, such as the general land use plans of
municipalities, and other national plans, such as the National Transport Plan, the Regional
Development Plan, and the National Infrastructure Plan for the Protection of Nature and
Sites of Cultural and Historical Value.
Other recent and ongoing policy developments include increased funding for research,
the establishment and continued development of a tourism education and training
program to improve skills, new legislation on home sharing to help level the playing field
in the short-term rentals market, and raising the accommodation tax. Tourism-specific
actions to help reduce carbon emissions and fulfil Iceland’s responsibilities concerning the
Paris agreement are also in the process of being formulated.

Preparations have commenced for a new official tourism strategy for Iceland 2020-2025,
building on the current Road Map and the coordination model of the Tourism Task Force.
Statistical profile
Table 1. Iceland: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Nights in all types of accommodation 854 1 025 1 085 909 1 044
Hotels and similar establishments 461 516 537 534 630
Specialised establishments 37 48 38 42 61
Private accommodation 40 56 75 47 49
Inbound tourism
Total international arrivals 885 1 034 1 250 1 587 2 159
Overnight visitors (tourists) 673 807 998 1 289 1 792
Top markets
United States 95 120 152 243 415
United Kingdom 95 137 181 241 316
Nordic Countries 145 150 164 160 175
Germany 70 83 94 103 133
France 42 49 59 66 85
Outbound tourism
Overnight visitors (tourists) 374 382 413 467 557
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
TOURISM RECEIPTS AND EXPENDITURE, MILLION ISK
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933640272

Table 2. Iceland: Enterprises and employment in tourism

Number of
establishments1
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Accommodation services for visitors 481 3 159 3 668 4 188 4 945 5 937
Hotels and similar establishments 368 2 918 3 367 3 835 4 542 5 517
Food and beverage serving industry 567 6 518 6 990 7 490 8 264 9 171
Passenger transport 158 3 276 3 513 3 801 4 152 4 966
Railways passenger transport 0 0 0 0 0 0
Road passenger transport 140 .. .. .. .. ..
Transport equipment rental 66 405 484 592 749 1 011
436 1 443 1 734 2 007 2 494 3 382
industry
Cultural industry 47 403 399 417 463 472
Sports and recreation industry 92 701 703 708 656 683
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640291
Table 3. Iceland: Internal tourism consumption

Million ISK
2015
Total .. .. ..
Transport equipment rental services 12 753 23 173 36 225
12 370 31 149 44 106
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933640310

II. OECD COUNTRY PROFILES – IRELAND
Ireland

Tourism is one of Ireland’s most important economic sectors and has played a
significant role in the country’s economic renewal since 2011.
Since 2010, there has been a sustained increase in tourism activity, driven by increased
numbers of overseas visitors. In 2016, the number of inbound arrivals increased by 10.9%
over the previous year, bringing the total to 9.6 million. Growth in visitor numbers from
North America was particularly strong, increasing by 19.4% to 1.8 million, while visitors
from Great Britain, Ireland’s largest source market, increased by 10.6% to 3.9 million.
Total revenue from tourism in 2016 was EUR 6.7 billion (excluding Irish carrier fares of
EUR 1.5 billion). Overseas visitors accounted for the greater part, increasing by 8.8% to
EUR 4.6 billion, while domestic and cross-border visitor spend contributed EUR 2.1 billion,
growing at a rate of 3.9%.
Overseas visitors and revenue grew again in the first half of 2017, up by 4.1% and 7.1%
respectively.
Employment in the industry is estimated to have grown to 220 000 by the end of 2016.

The Tourism Division of the Department of Transport, Tourism and Sport sets national
tourism policy, providing the strategic direction required to support the growth of a
competitive and sustainable tourism industry. It does this through developing, implementing
and influencing a range of policy actions and programmes of the Department, its agencies
and other government Departments, in consultation with industry partners. Two tourism
agencies operate under the aegis of the Department to administer policy:
● Fáilte Ireland was established to support the tourism industry and sustain Ireland as a
high-quality and competitive tourism destination. It provides a range of practical
support to help tourism businesses better manage and market their products and
services and develop experiences in line with new experience brands. Fáilte Ireland also
promotes Ireland as a domestic holiday destination through its Discover Ireland
marketing campaign and manages a nationwide network of tourist information centres.
● Tourism Ireland Ltd is an all-island tourism marketing company with the overall objective
of promoting increased tourism to the island of Ireland. It is accountable to the North
South Ministerial Council, with funding provided by the Department for the Economy in
Northern Ireland and by the Department of Transport, Tourism and Sport in Ireland.
Local Authorities have long recognised the important contribution of tourism to their
local areas, and are active in many areas of its delivery, including organising and funding

events, and developing public tourism infrastructure. Many work closely with Fáilte Ireland
to develop these projects.
In its 2015 Tourism Policy Statement, the Government stated its commitment to a clear
understanding of the responsibilities and expectations of Government, State agencies,
Local Authorities, the tourism industry and other stakeholders in the development of the
tourism industry, with an enhanced role for Local Authorities and recognition of the
contribution of communities to tourism.
Ireland: Organisational chart of tourism bodies
Department of Transport, Tourism and Sport
Fáilte Ireland
Tourism Ireland
(National Tourism Development
(Overseas Marketing)
Authority)
Source: OECD, adapted from the Department of Transport, Tourism and Sport, 2018.
The overall central budget allocated to tourism in 2017 is EUR 122 million, an increase
of 0.9% on 2016. Of this, 58% goes to Fáilte Ireland, 41% to Tourism Ireland and 1% to the
Department of Transport, Tourism and Sport.

Notwithstanding strong performance in recent years, the tourism sector in Ireland
faces a number of issues and challenges. Chief amongst these are:
● The UK vote to leave the EU is a challenge for tourism in Ireland. The consequent
depreciation in sterling has had a negative impact on the number of British visitors
(down 6.7% in the year to September 2017). It will be important that Brexit negotiations,
particularly in areas such as aviation, borders, the Common Travel Area with the UK, and
joint visa arrangements, do not result in outcomes that are detrimental to the tourism
sector in Ireland.
● Access is critically important for Irish tourism given the country’s island status.
Anything which reduces access, particularly air access, will lead to reduced numbers of
overseas visitors.
● Accommodation capacity, primarily in the main tourist centres at peak periods, has
emerged as an issue with the strong sector performance of recent years. In particular,
capacity in Dublin has been flagged as an issue. Evidence suggests that a number of hotel
projects in the pipeline will help address this issue.
● Many of the main visitor attractions suffer from capacity issues at peak periods. In 2016
Fáilte Ireland published a Tourism Investment Strategy 2016-2022, laying out funding
streams and delivery mechanisms for a capital allocation of EUR 125.7 million to tourism
product development.

A 2015 policy statement, People, Place and Policy – Growing Tourism to 2025, sets out
the Government’s commitment to:
● Place tourism as a key element of economic strategy, reflecting the highest standards of
environmental and economic sustainability, and continuing to recognise and encourage
its role in promoting peace and political co-operation on the island of Ireland.
● Recognise the significance of Ireland’s people and place as assets in attracting an even
greater number of overseas visitors in the future.
● Ensure that Ireland is successfully promoted overseas, and that a balance of visitors
from both mature and developing markets is achieved, visitors’ expectations are met,
heritage assets are protected, and public investment in tourism is based on evidence of
need.
● Ensure that Ireland’s tourism industry has the capacity and capability to meet the
changing needs of visitors.
In 2016, the newly-formed Government affirmed its commitment to work towards
achieving the ambitious tourism policy goals set for 2025.
The Tourism Action Plan 2016-2018 sets out 23 specific actions required to help
achieve these objectives, addressing a number of key issues including:
● Training and skills in the tourism and hospitality sectors,
● Visitor accommodation,
● Overseas tourism marketing,
● The visitor experience,
● The contribution of sport to tourism,
● Technology in tourism,
● Planning for future growth.
The Plan allocates responsibility for each action to the Department, the tourism
agencies and other stakeholders as appropriate. A Tourism Leadership Group meets
approximately every six months to monitor progress. A new Action Plan for the period
2018-2020 will be drawn up in early 2018.
A key initiative in the last three years has been the establishment of geographic/
thematic experience brands for the Wild Atlantic Way, Ireland’s Ancient East, and Dublin,
which have been the focus of marketing and product development initiatives (Box 1.12). This
distinctive “story-based” approach ensures that Ireland’s culture, history and heritage is
brought to life by the stories found at its tourism offerings. These regional branding
experiences have proved very successful and contributed to increased visitor numbers to the
regions covered. They continue to gain traction internationally and are central to Ireland’s
overseas marketing effort.

Statistical profile
Table 1. Ireland: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Great Britain 2 518 2 641 2 789 3 119 3 394
Other Europe 1 415 1 461 1 521 1 787 1 965
United States/Canada 922 1 012 1 121 1 271 1 447
Germany 435 464 533 604 619
France 382 405 418 469 490
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933640329

Table 2. Ireland: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Passenger transport 15 628 20 240 19 674 20 463 20 843 ..
1 327 6 239 6 703 7 088 7 311 ..
industry
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640348
Table 3. Ireland: Internal tourism consumption

Million EUR
2007
Total .. .. ..
Food and beverage serving services 983 932 1 915
Passenger transport services 762 1 062 1 824
155 12 167
industry
Other consumption products 805 762 1 567
.. Not available
1 2 http://dx.doi.org/10.1787/888933640367

II. OECD COUNTRY PROFILES – ISRAEL
Israel

Tourism accounts directly for 2.8% of Israel’s GDP and about 3.5% of total employment.
The combined total of direct and indirect tourism jobs is estimated at 230 000, representing
just over 6% of total employment.
In 2016, there were 2.9 million international tourist arrivals, 3.6% more than in 2015.
There were also 169 800 same-day visitors. Domestic tourism accounted for about 62% of
all person/nights in all types of accommodation.
International tourism receipts are estimated at USD 4.7 billion. Israel’s most important
international source markets are, in decreasing order of size, the United States, the Russian
Federation, France, the United Kingdom and Germany, together accounting for 54% of all
tourist arrivals.
Revenues from incoming tourism are estimated to account for 15% of services exports
and 5% of total exports in 2016. In the first half of 2017 international tourist arrivals
increased by approximately 25% compared with the first half of the 2016, mainly due to the
positive effects of geopolitical stability in the region and intensive marketing effort,
specifically in Europe.

Tourism policy, marketing and development of the tourism sector are handled by the
Ministry of Tourism, assisted by several other ministries, with a focus on infrastructure and
site development, rural and agro tourism, SME development, and job training. These
ministries include the Ministry of Environmental Protection, the Ministry for the
Development of Negev and Galilee, Ministry of the Economy, and the Ministry of Agriculture.
There are also many regional and local organisations promoting tourism in Israel. The
regional and local authorities have the following powers and responsibilities:
● Examination by local planning committees of all building projects within their jurisdiction,
including hotels and other tourism projects, and forwarding recommendations to the
National Planning Committee, of which they are members,
● Issuing construction permits,
● Collecting local taxes, although during a crisis, or as means of encouragement, the tax
burden on tourism projects may be eased,
● Maintaining tourist sites,

● Operating projects as joint ventures with the Ministry of Tourism, including: constructing
tourism infrastructure (e.g. beach promenades and bike routes); domestic marketing
campaigns; and organising and promoting local events and festivals.
In the resort cities and regions of Acre, Eilat, Jaffa, Jerusalem and Tel-Aviv, the
Government has established Government Development Companies.
Israel: Organisational chart of tourism bodies
Minister of Tourism
Minister of Tourism office
Director General
Ministry of Tourism
Director General
office
Information Human
Accounting Spokesperson Internal Budget
System Legal Adviser Resources
Department Department Auditor Department
Department Administration
Strategy and Policy Tourist Experience Tourism Marketing Infrastructure Development

Department Administration Administration and Investment Administration
In 2016, the general budget of the Ministry of Tourism was ILS 930 million. Of this total,
some 43% was allocated to marketing, 24% to investment incentives, and 23% to public
tourist infrastructure. All funding comes from the Government’s general budget. Marketing
and infrastructure are funded by the Government and local authorities, while
accommodation is funded by the private sector, although, sometimes with the support of
government grants.

The main issues and challenges for tourism in Israel are:
● Diversification and improvement of the product and intensification of the tourist
experience, including development of public infrastructure for tourism,
● breaking into and development of new markets while preserving existing markets and
visitor flows,
● Creating and providing easy access to tourist information,
● Adapting the product to visitors from new and emerging source markets.
Policy priorities include:
● Expansion of hotel supply through investment,
● Raising the competitiveness of tourism, in particular by lowering vacation prices
through easing hotel regulations and promoting alternative types of accommodation,
● Marketing and promotion, mainly through incentivising airlines to include Ben-Gurion,
Ovda and the new Ilan Ramon (to open in 2018) Airports in their itineraries in order to

increase the number of flights to Israel; and co-operation with on-line (OTA) and off-line
travel agents, offering incentives according to the extent of increase in purchases of
packages to Israel,
● Improving the tourist experience, making information accessible on a digital level and
supporting the creation of new tourism smartphone applications,
● Developing new tourist products, such as the Desert Tourism product in the Negev area
(Box 1.10).
Policies aimed at addressing these challenges and priorities include:
● Placing emphasis on the tourist experience, building specific facilities (such as bicycle
tracks and provision for camping), lowering prices and upgrading information bureaux,
● Encouraging investment in tourism, including identification of, and engagement with,
entrepreneurs,
● Supporting negotiations with a range of OTAs and airlines,
● Diversifying the types of accommodations, and increasing the number of hotel beds,
● Streamlining innovative technological work,
● Improving marketing activity: conducting familiarisation trips, hosting visits by
journalists and others of influence, and increasing Ministry activity with digital
campaigns,
● Consolidating research tools and programs, and monitoring performance.

Statistical profile
Table 1. Israel: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Specialised establishments 1 026 1 043 983 965 984
Other collective establishments 967 991 1 013 1 012 1 080
Inbound tourism
Top markets
United States 584 597 686 637 672
France 263 292 289 300 293
United Kingdom 165 173 165 198 197
Germany 158 160 162 198 180
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
.. Not available
1 2 http://dx.doi.org/10.1787/888933640386

Table 2. Israel: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. 122 100 e 120 000 e .. .. ..
Tourism industries 21 521 118 100 e .. .. .. ..
Accommodation services for visitors 1 585 38 800 e 39 000 e .. .. ..
Hotels and similar establishments 388 .. .. .. .. ..
Food and beverage serving industry 13 697 12 500 e .. .. .. ..
Passenger transport .. 17 000 e .. .. .. ..
Air passenger transport .. 12 500 e .. .. .. ..
Road passenger transport .. 4 500 e .. .. .. ..
Transport equipment rental .. 7 000 e .. .. .. ..
1 451 14 900 e .. .. .. ..
industry
Sports and recreation industry .. 9 500 e .. .. .. ..
4 400 18 400 e .. .. .. ..
Other industries .. 4 000 e .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933640405
Table 3. Israel: Internal tourism consumption

Million ILS
2014
Total .. .. ..
Passenger transport services .. .. ..
Railways passenger transport services 20 .. 20
Road passenger transport services 644 879 1 523
2 631 1 128 3 759
industry
Cultural services 758 368 1 126
Country-specific tourism characteristic services 432 2 137 2 569
.. Not available
1 2 http://dx.doi.org/10.1787/888933640424

II. OECD COUNTRY PROFILES – ITALY
Italy

In line with the global trend, data for 2016 shows steady and positive growth for
tourism in Italy. The number of inbound visitors and average length of stay continued to
increase steadily in 2016. International arrivals totalled 84.9 million, of which 32.6 million
were overnight stays, resulting in 160.4 million nights spent in hotels and similar
establishments. International overnight stays rose by 9.4% between 2011 and 2016. The top
four inbound markets (including both overnight and same-day visitors) were Switzerland,
Germany, France and Austria. More than 60% of international arrivals head to the four
regions of Veneto, Lombardy, Tuscany and Lazio.
International travel receipts grew at a stronger pace (3.3%) than Italian exports in
general (3%) moving from EUR 35.6 billion in 2015 to EUR 36.7 billion in 2016, and
confirming the leading role of tourism in the Italian economy. Travel receipts accounted for
6.3% of total exports in 2016.
Expenditure by Italian outbound tourists increased from EUR 22 billion in 2015 to
EUR 22.3 billion in 2016. Italy’s balance of tourism payments therefore remains positive and
6.2% higher than for 2015.
A total of 54.7 million domestic overnight trips were made in 2016 (an increase of 16.2%
on 2015), with 135.6 million nights spent in commercial accommodation (up 1.7% on 2015).
Tourism makes an important contribution to the Italian economy, accounting overall
for 11.8% of national GDP and 12.8% of total national employment in 2015.

The legislative framework for tourism in Italy involves the Ministry of Cultural
Heritage, Activities and Tourism (“the Ministry”), the Permanent Conference for Relations
between the State, Regions and Autonomous Provinces of Trento and Bolzano, and the Joint
Conference of Regions and Municipalities.
While the Directorate-General (DG) for Tourism in the Ministry sets the strategic policy
agenda, the Italian Constitution devolves several key activities to the regions, including
regulating tourism businesses, developing strategic marketing activities and managing
European Structural Funds. Provinces and municipalities can also issue local regulations
for the tourism sector.
The DG for Tourism, beyond its major task to develop and launch national tourism
policies in coordination with regions and autonomous provinces, supervises the National
Italian Tourism Agency (ENIT) and the Italian Alpine Club. The DG for Tourism also
manages all tourism activities that fall outside the competence of the regions. It provides
aid and incentives to develop tourism demand, it delivers certifications and authorisations

to foreign professionals, it manages relations with international organisations, and it

participates in the development and adoption of European Union legislation.
The role of ENIT is to market and promote Italy as a tourist destination. A 2015 statute
transformed ENIT from a public body into a public economic entity. The Board of Directors
includes two members appointed by the Minister. ENIT may enter into agreements with
the regions and autonomous provinces, local authorities and other public bodies.
Italy: Organisational chart of tourism bodies
Ministry of Cultural Heritage, Standing Committee for the Promotion

Activities and Tourism of Tourism in Italy
National Tourism Agency (ENIT) Directorate General for Tourism Italian Alpine Club
National Tourism Observatory
Administration and Operations Tourism Policies
Source: OECD, adapted from the Ministry of Cultural Heritage, Activities and Tourism, 2018.
Tourism receives support from the Culture and Innovation 2014-20 programme
financed by European Union Structural Funds. Of the total budget of EUR 490 million, a
large proportion is allocated to the development of 60 cultural centres in five southern
regions: Campania, Apulia, Basilicata, Calabria and Sicily.
The government-controlled Tourism Investment Fund, launched in 2014, and managed
by the National Investment Bank Cassa Depositi e Prestiti, has an increased ceiling of
EUR 250 million, of which EUR 100 million had been invested by 2016. The fund operates as a
bridge between public assets in need of development and the private real estate market.

The government is reshaping its plan for the tourism economy, putting it at the heart of
national policies. During 2016, the national tourism industry and all its public and private
stakeholders came together to generate a new National Strategic Plan for Tourism (Piano
Strategico del Turismo – PST) for the period 2017-2022. The Plan brings together all tourism
operators in Italy with a consistent and coordinated approach, providing a clear framework
to improve decision-making in the sector. It is based on key drivers such as technological and
organisational innovation, skills development, and quality services. These aspects are
integrated with a lasting and sustainable approach to Italy’s environmental and cultural
heritage.
The Plan’s vision is to revive Italy’s leadership in the tourism market and boost its
contribution to the economic, social and sustainable development of its local areas. It
focuses on four major themes, namely, territory and heritage, competitiveness and
employment, putting the tourist at the centre, and integration and interoperability, with
the strategic principles of sustainability, innovation, and accessibility, cutting across each
(Box 1.5).

The Ministry has signed joint protocols with the following authorities:
● The Ministry of Economic Development (MISE) and AGID (Government digital agency) for
the creation of new digital services for tourism, including national wifi and large
bandwidth networks.
● The Ministry of Infrastructure and Transport, with a Special Plan for Tourist Mobility.
New commitment to tourism mobility in Italy

The Special Plan for Tourist Mobility has been signed between the Ministry of Culture
and Tourism and the Ministry of Infrastructure and Transport. The Plan provides an
important framework for commitment and collaboration to improve mobility for tourism
by setting common goals with sector operators and key stakeholders. EUR 372 million is
available to spend over the period 2016-2024, including EUR 90 million for investment in a
“soft mobility” network (e.g. cycle tracks, tourist rail services) and EUR 60 million for Paths
(Cammini), such as the Via Francigena and the Via Appia.
2016 has been the year of The Italian Paths (I Cammini d’Italia), with the objective of
enhancing the value of cultural routes. Initiatives have taken place throughout the year,
including the creation of a directory of paths and a website (www.camminiditalia.it).
A Tax Credit system for the tourism sector (the “Art Bonus Decree”), which was
approved in 2014, has been refinanced with EUR 460 million until 2020 with special regard
to the refurbishment and modernisation of tourism establishments.
The revived collaboration between the public and private sectors in tourism features a
new support system of EUR 12.7 million for businesses and enterprises with a special focus
on networks and start-ups.
Great emphasis has been placed from a promotional perspective on extending the
national offer away from major attractions (cultural cities like Rome, Florence, Venice, and
Milan) towards the diversity and plurality of landscapes and destinations. Among these
initiatives, the first mapping of Italian villages (I Borghi più belli d’Italia) has been developed.
Finally, a new hotel classification system with a special focus on sustainability and
accessibility is currently being approved.

Statistical profile
Table 1. Italy: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips .. .. 126 515 112 860 127 858
Overnight visitors (tourists) 61 594 49 809 50 155 | 47 093 54 714
Same-day visitors (excursionists) .. .. 76 359 65 767 73 143
Hotels and similar establishments 132 910 128 429 127 568 133 270 135 599 p
Other collective establishments 67 207 63 563 63 411 66 886 67 825 p
Private accommodation 249 971 199 860 182 349 | 150 993 167 453
Inbound tourism
Top markets
Germany 10 170 9 545 9 451 10 016 11 161
France 4 977 5 252 5 358 6 483 6 394
United Kingdom 3 377 3 443 3 768 4 153 4 356
Austria 3 083 3 333 3 244 3 417 3 513
Switzerland 3 135 3 026 3 261 3 265 3 336
Outbound tourism
Top destinations
France 5 325 4 796 5 281 5 635 5 435
Spain 2 479 2 201 2 312 2 481 2 646
Germany 2 324 2 071 2 146 2 152 2 425
Switzerland 1 880 1 581 1 706 1 594 1 478
United Kingdom 1 441 1 425 1 423 1 483 1 746
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933640443

Table 2. Italy: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Hotels and similar establishments 33 163 .. .. .. .. ..
.. .. .. .. .. ..
industry
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640462
Table 3. Italy: Internal tourism consumption

Million EUR
2010
Total .. .. ..
6 674 188 6 862
industry
Cultural services 1 256 258 1 513
Country-specific tourism characteristic goods 11 543 6 997 18 540
.. Not available
1 2 http://dx.doi.org/10.1787/888933640481

II. OECD COUNTRY PROFILES – JAPAN
Japan

Overall, the size of the tourism economy in Japan increased by 4% in 2016 to
JPY 25.8 trillion.
The number of international visitors to Japan has risen from 6.2 million in 2011 – the
year of the Great East Japan Earthquake – to 24.0 million in 2016. Consumption by
international visitors increased from JPY 813 billion to JPY 3.8 trillion, during this period.
Arrivals grew by 21.8% between 2015 and 2016. Of the 20 main overseas markets, all
except Russia set new visitation records. Foreign tourists from other Asian countries
totalled around 20.4 million, a 22.7% increase over the previous year, accounting for 85% of
the total number of foreign tourists visiting Japan.
The three top inbound markets are China, Korea and Taiwan. All have seen growth,
although there has been some fluctuation in arrivals from Korea owing to the influence of
the Kumamoto earthquakes in 2016.
Domestic tourism accounts for around 80% of the tourism economy in Japan. The
number of Japanese people who travelled within Japan in 2016 reached 641 million, up 6%
from the previous year. In 2016, the total spending on domestic travel was JPY 20.9 trillion,
an increase of 2.7% over the previous year. The main drivers of domestic tourism are hot
springs, fine cuisine, nature or theme parks, and visiting historically or culturally
significant sites. Social media is having a considerable impact on domestic choices along
with the availability of low cost flights.

Established as an external organ of the Ministry of Land, Infrastructure, Transport and
Tourism in 2008, the Japan Tourism Agency takes a leading role in tourism policy and
represents the Government on issues relating to tourism and the promotion of Japan as a
tourist destination. The Japan Tourism Agency is headed by a Commissioner.
The Japan National Tourism Organisation is in charge of executing the Visit Japan
Project and other marketing activities, including promotion to the MICE market. This
includes attracting visitors to Japan through overseas media campaigns and exhibitions at
overseas tourism fairs.
Local governments improve local tourism resources, organise events and promotions,
and manage the development of human resources. The National Government offers support
to boost such regional initiatives including consulting services, providing statistical data,
initiating area-wide co-operation and supporting regional development initiatives.

The Japan Tourism Agency budget for 2017 is JPY 25.6 billion (more than double its
2015 budget of JPY 10.4 billion), broken down as follows: JPY 9.4 billion for policies to
promote inbound tourism; JPY 8.6 billion to support the development of tourism
infrastructure; JPY 2.8 billion to support the development of tourism in regions and
JPY 4.6 billion to help regenerate the Tohoku region.
Japan: Organisational chart of tourism bodies
Ministry of Land, Infrastructure, Local Government (tourism)

Transport and Tourism
9 District Transport Bureaux

Japan National Tourism
Organisation (JNTO)
Japan Tourism Agency (JTA)
Regional Development
General Affairs Division
Department
Various Tourism Industry
Organisations
Tourism Strategy Division Regional Development
Division
Tourism Industry Division
Tourism Resources Division

International Tourism Division
4 Directors
Source: OECD, adapted from the Ministry of Land, Infrastructure, Transport and Tourism, 2018.
A Ministerial Council for the Promotion of Japan as a Tourism-Oriented Country was

established in March 2013 to unify government efforts on tourism. A cross-ministerial
budget has yielded many projects and this budgetary policy has been maintained until this
year, including the International Tourism Support for Historical Landscapes subsidy. The
Japan Tourism Agency plays a co-ordinating role on tourism issues with the relevant
government ministries.

The main factors behind the very positive growth in international arrivals in the last
few years include relaxing visa restrictions and expanding the tax-free system for foreign
tourists along with infrastructure improvements and better promotion.
Some of the main issues and challenges are: the creation of tourist areas of
international appeal, the development of human resources for the tourism industry, and
investing in additional appropriate infrastructure.
Tourism policy and planning is led by the overarching national strategy for economic
growth, the Japan Revitalization Strategy 2016 – Towards the 4th Industrial Revolution. This
has a target of achieving the “Biggest Post-War Goal: 600 trillion Yen GDP” by focusing on
the following three challenges:
● The strategic creation of new promising growth markets,
● An “Industrial Revolution” to overcome the lack of workers and wage restrictions resulting
from a decreasing population,
● The development of personnel to support the new industrial framework.

With respect to new promising growth markets, 10 Public-Private Strategic Projects

have been established, with the realisation of Japan as a tourism-oriented country included
as one of the projects. Tourism is the trump card for regional revitalisation and is seen as a
key pillar in the growth strategy.
To realise the policies to become a tourism-oriented country, a new “Tourism Nation
Promotion Basic Plan” was approved by the Cabinet, defining those policies to be enacted
by the entire government. The plan, which runs from 2017-2022, establishes four basic
national policies:
● The development of the private sector economy,
● The furtherance of international mutual understanding,
● The increased stability of civilian life,
● Countermeasures against the risks of fires and accidents.
In addition, the government’s action plan for tourism policies in the “Tourism Vision
Realisation Programs 2017” expresses more concrete policies for the coming year and
moves towards realisation of that vision.
With the 2020 Tokyo Olympics/Paralympics approaching, Japan is working on various
initiatives with a view to becoming a world-class tourist destination. This involves
preparing additional infrastructure to accept the expected increase in foreign tourists,
dispersing tourists to local areas, revitalising tourism in disaster-struck areas, and dealing
with the changing needs of tourists.
Accommodation capacity is an important issue in parts of Japan. Extra capacity is
being provided by new accommodation platforms, but these need regulation. In response,
a Private Lodging Business Act was introduced in June 2017, which will be enforced from
June 2018. This new law defines a set of rules for operating a private lodging. It provides
notification and registration systems specifically for operators of private lodgings and for
agencies that act as intermediaries between the guests and the operators (Box 1.19).

Statistical profile
Table 1. Japan: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
China 1 430 1 314 2 409 4 994 6 374
Korea 2 044 2 456 2 755 4 002 5 090
Chinese Taipei 1 467 2 211 2 830 3 677 4 168
Hong Kong, China 482 746 926 1 524 1 839
United States 717 799 892 1 033 1 243
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
TOURISM RECEIPTS AND EXPENDITURE, MILLION JPY
Inbound tourism
Total international receipts 1 291 987 1 649 825 2 206 700 3 304 700 3 337 500
International travel receipts 1 163 092 1 476 616 1 997 400 3 024 000 3 337 500
Outbound tourism
Total international expenditure 3 266 108 3 145 219 3 023 500 2 804 200 2 011 000
International travel expenditure 2 224 813 2 131 105 2 041 900 1 933 400 2 011 000
International passenger transport expenditure 1 041 295 1 014 115 981 600 870 800 ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640500

Table 2. Japan: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 60 512 4 424 721 4 477 798 6 431 130 | 6 344 990 ..
Hotels and similar establishments 50 628 427 677 419 227 623 250 | 581 020 ..
Food and beverage serving industry .. 1 092 878 1 063 824 3 443 750 | 3 464 980 ..
Passenger transport .. 1 407 906 1 443 075 1 045 760 | 975 090 ..
Air passenger transport .. 80 063 84 240 46 980 | 46 890 ..
Railways passenger transport .. 417 437 427 703 305 890 | 260 070 ..
Road passenger transport .. 694 584 678 412 622 430 | 597 800 ..
Water passenger transport .. 215 822 252 720 70 460 | 70 330 ..
Passenger transport supporting services .. 643 985 670 410 598 950 | 632 960 ..
9 884 .. .. .. .. ..
industry
Sports and recreation industry .. 852 275 881 261 719 420 | 690 940 ..
.. .. .. .. .. ..
.. Not available; | Break in series
1 2 http://dx.doi.org/10.1787/888933640519
Table 3. Japan: Internal tourism consumption

Million JPY
2015
Total .. .. ..
Consumption products 21 734 935 3 304 700 25 481 302
Tourism characteristic products 13 448 260 2 022 657 15 912 584
Accommodation services for visitors 3 525 303 780 423 4 747 393
Food and beverage serving services 2 584 414 558 365 3 142 779
Passenger transport services 5 733 485 571 260 6 304 745
Air passenger transport services 2 139 175 301 037 2 440 212
Railways passenger transport services 2 940 729 217 387 3 158 116
Water passenger transport services 111 029 5 304 116 333
473 783 19 993 493 776
industry
Other consumption products 8 286 675 1 282 043 9 568 718
Tourism connected products 7 714 648 1 264 448 8 979 096
.. Not available
1 2 http://dx.doi.org/10.1787/888933640538

II. OECD COUNTRY PROFILES – KOREA
Korea

In 2016, the number of international visitors to Korea totalled 17.2 million, an increase of
30.3% over 2015. The previous year, inbound tourism had been sufficiently resilient to
withstand the threat presented by the emergence of MERS (Middle East Respiratory Syndrome),
with a decrease of just 6.8% in the number of international visitors compared with 2014.
Korea has become one of the most popular destinations for Chinese and other Asian
tourists in recent years. In 2016, China retained its position as the largest inbound market,
accounting for 8.1 million visitors. Other markets of importance included Japan (2.3 million
visitors), the United States (866 000 visitors) and Taiwan (833 000 visitors). At the same
time, outbound travel grew by 15.9% to 22.4 million departures.
Tourism income in 2016 was estimated at USD 17.1 billion, up 13.2 % on 2015. Tourism
expenditure was USD 23.1 billion, showing a reduction in the tourism deficit from
USD 6.4 billion in 2015 to USD 6.0 billion in 2016, a decrease of 6.6 %. Highest spending
visitors included those from the Middle East (USD 2 594), China (USD 2 060) and Russia
(USD 1 783), compared to the average per person spend of USD 1 625.
The pattern of demand from international visitors has diversified in recent years,
shifting from group tours towards individual tours and from five-star hotel stays towards
three- and four-star hotel stays. Shopping accounted for 52.6% of all credit card
expenditure by international visitors in 2016. Spending on accommodation (31.7%) and
food services (9.1%) both showed a significant increase on the previous year.
In 2016, tourism contributed an estimated 5.1% of total GDP in Korea and the total
number of employees in the tourism industry was 1.5 million, 5.8% of total national
employment. Total domestic trips numbered 241.7 million, an increase of 1.4% over the
previous year. Same-day trips increased by 1.6% to 140.6 million, overnight travel rose by
1.3% to 101 million, and the number of nights spent by domestic visitors in collective
accommodation establishments totalled 271 million in 2016.

In May 2017, the incoming President and Administration announced a new policy
agenda, including goals, strategies and tasks for the next five years with the ultimate
purpose of improving tourism welfare, promoting domestic tourism, and fostering a fourth
industrial revolution. Accordingly, the Ministry of Culture, Sports and Tourism (MCST)
completed its reorganisation in September 2017 to effectively respond to the new policy
agenda while continuing to increase the competitiveness of Korea’s tourism. As a result,
under the purview of a Vice Minister within the Ministry of Culture, Sports and Tourism
(MCST), there are currently two policy bureaus as follows:

● Tourism Policy Bureau, encompassing the Tourism Policy Division, Domestic Tourism
Promotion Division, International Tourism Division and Tourism Service Enhancement
Division.
● Tourism Industry Policy Bureau, comprised of the Tourism Industry Policy Division,
Convergence Tourism Industry Division and Tourism Development Division.
The new administration is reviewing the option of establishing a National Tourism
Strategy Meeting, to be presided over by either the President or Prime Minister. This would
involve a horizontal and public-private co-operative platform at the ministerial level in order
to foster tourism as a national strategic industry. Participating ministries may include the
Ministry of Land, Infrastructure and Transport, Ministry of Justice, Ministry of Foreign Affairs
and Ministry of Maritime.
Korea: Organisational chart of tourism bodies

Ministry of Culture,
Sports and Tourism
Tourism Industry Policy

Tourism Policy Bureau Korea Tourism Organization
Bureau Local Government (Tourism)
(KTO)
Tourism Industry Policy Korea Culture and Tourism Various Tourism Industry
Division Institute (KCTI) Organisations
Tourism Policy Division Convergence Tourism

Industry Division
Domestic Tourism Tourism Development

Promotion Division Division
International Tourism
Division
Tourism Service
Enhancement Division
Source: OECD, adapted from the Ministry of Culture, Sports and Tourism, 2018.
The Tourism Promotion and Development Fund supports tourism promotion under
Article 14 of the Framework Act on Tourism. In 2016, the total expenditure of the Fund was
approximately USD 1.2 billion, including USD 332 million allocated to subsidies for tourism
industry promotion, as well as tourism infrastructure and other projects to attract foreign
tourists.

In recent years, Korea’s tourism policy has focused primarily on increasing the volume
of foreign tourists. In May 2017, the new Administration introduced a policy direction
emphasising “tourism welfare” and promoting tourism as a mechanism to both enhance
quality of life and boost the national economy. The five major priorities in tourism for 2017-
2021 are:
● Fostering a tourism-leisure society,
● Enhancing the competitiveness of the tourism industry,
● Creating quality jobs through tourism,

● Fostering balanced regional growth and local economic development through tourism,
● Diversifying source markets and nourishing a more value added industry.
One of the major challenges in fostering sustainable inbound tourism is to diversify
both source markets and regional destinations for visitors. Numbers of foreign tourists hit
a record high in 2016. However, Chinese visitors accounted for 46.8% of the total
international arrivals, helped by promotional campaigns and easing of visa rules to target
a growing group of Chinese independent tourists. The tourism administration is moving to
diversify source markets by launching aggressive marketing campaigns which target Japan
and Southeast Asia.
Other priorities aimed at generating larger international tourism receipts include
developing strategies to attract more independent travellers and fostering high value
added tourism.
Korea is undertaking the following initiatives:
● Introduction of vacation bonus subsidies, providing employees of small companies with
vacation bonuses partly subsidised by the government (25% of the set amount): a vacation
support plan to better assure that employees of Small and Medium Sized Enterprises
(SMEs) take adequate vacation leave; issued in the form of a prepaid debit card. The total
vacation cost is shared by the ratio of 50% employee, 25% government, and 25% employer
(each deposit their share to the virtual account linked with the prepaid card); spending of
this card is restricted to the tourism sector and to a specified usage period.
● Life cycle tourism programs tailored to all age groups from children to seniors. Plans are
also dedicated to underprivileged groups.
● Customised tourism content, promotion, and marketing strategies for each major source
market.
● A strong overseas promotional and marketing campaign focused on ten designated
regional destinations with high potential to attract a greater number of international
visitors.
● A dedicated online platform and improved digital marketing strategies to enhance the
visitor experience of independent travellers. Recommended tour itinerary information,
with an option to purchase product, is scheduled to launch in September 2017.
● Major online and mobile promotional campaigns designed to attract the interest of
independent travellers.
In addition to marketing campaigns, some new products have been introduced to
facilitate tourist movements and spending. Furthermore, efforts continue to be made to
improve the competitiveness of high added-value tourism by targeting new corporate
meetings, diversifying the incentive tourism market and expanding the realm of medical
tourism.

Incentives to promote and facilitate visitor spending in Korea

The Korea Tour Card will be launched in 2017, aimed at improving the overall visitor
experience of destinations. This official tour card, to be offered exclusively to international
visitors, can be used as a convenient way to pay for public transport fares and entrance
fees at various tourist attractions as well as to purchase shopping, dining, and
entertainment products. Discounts will also be available to card users. Available for
purchase at select locations, it offers international visitors a number of benefits including
shop discounts, coupons, and a welcome gift for first-time card buyers. It can be topped up
or refunded at banks, convenience stores, and subway stations (http://koreatourcard.kr).
The Tax Refund Automated System and Immediate Tax Refund Policy have also been
introduced to enhance the shopping experience of visitors to Korea. The Automated Tax
Refund System, launched in 2014, simplifies the traditional tax refund procedure. In the
airport, visitors can scan their passport and VAT refund receipt on the landside kiosk to
receive the tax refund in cash on the airside. Since January 2016, the Immediate Tax
Refund Policy has enabled International tourists to purchase products, up to a certain
value, exclusive of tax. This policy provides a more pleasant and convenient experience by
saving travellers the time and effort of claiming tax refunds.

Statistical profile
Table 1. Korea: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
China 2 837 4 327 6 127 5 984 8 068
Japan 3 519 2 748 2 280 1 838 2 298
United States 698 722 770 768 866
Chinese Taipei 548 544 644 518 833
Thailand 360 400 558 523 651
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
.. Not available
1 2 http://dx.doi.org/10.1787/888933640557

Table 2. Korea: Enterprises and employment in tourism

Number of
establishments
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
14 607 69 990 70 574 69 400 84 558 ..
industry
.. .. .. .. .. ..
Other country-specific tourism industries 619 13 599 14 092 17 330 15 131 ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640576

II. OECD COUNTRY PROFILES – LATVIA
Latvia

Tourism is one of Latvia’s main drivers of economic development, an important source
of export revenue and a key contributor to GDP.
In 2016, tourism directly contributed EUR 1 billion, amounting to 4.1% of Latvia’s total
GDP. Tourism direct exports totalled EUR 783 million, representing 4.5% of total exports.
The tourism sector, together with induced impacts, provided almost 79 000 jobs and
accounted for 8.9% of total employment in 2016.
The number of hotels and other tourist accommodation providers has increased in
recent years. In 2016 there were 607 establishments (37 453 beds) compared to 544 in 2014
(33 459 beds). The impact of sharing economy services such as Airbnb, has also continued
to grow, with over 10% of visitors now estimated to use such services.
Hotels and other similar establishments recorded 2.3 million guests in 2016, an
increase of 7.7% over 2015 levels, of which nearly 70% were international visitors
(1.5 million). The largest tourism markets are Russia (208 800), Germany (187 800),
Lithuania (158 800) and Estonia (145 300) together accounting for 45% of foreign tourists.
There were 12 million domestic trips in total in 2016, of which 3 million included
overnight stays and 9 million were same-day visits. Receipts from domestic travel totalled
EUR 328 million, of which overnight visitor trips accounted for EUR 111 million.

The Ministry of Economics (the “Ministry”) is responsible for the development and
implementation of tourism policy in Latvia. Its main responsibilities are determined by the
Tourism Law of 1998, under which it is charged to:
● Develop national tourism policy and organise and coordinate its implementation,
● Develop draft legislation and regulations,
● Represent the State’s interests in the tourism industry,
● Plan state aid to the tourism industry,
● Prepare and implement international agreements regarding co-operation in the field of
tourism, as well as coordinate the development of international projects.
In 2016 the tourism board of Latvia (the Latvian Tourism Development Agency) was
merged with the Investment and Development Agency of Latvia (the “Agency”), which is
supervised by the Ministry.
The new tourism tasks of the Agency include:
● Ensuring implementation of Latvian tourism development policy,

● Promoting Latvia as an attractive tourist destination to both national and international

markets,
● Introducing tourism projects developed by a partnership of the public and private
sectors,
● Attracting financial resources for tourism development,
● Introducing quality management into the tourism sector, including the assessment of
compliance by Latvian tourism operators and related service and retail providers,
● Helping to implement international co-operation agreements in the tourism sector.
The Ministry and Agency co-operate actively with the regions of Latvia via four
regional tourism associations. If more detailed issues are to be resolved, co-operation with
local municipalities and tourism information centres is also possible. The Ministry also
co-operates with sector associations on issues related to specific topics such as
accommodation or the activities of travel agencies.
Coordination over nationally relevant issues regarding tourism is undertaken by the
Tourism Committee of the National Economy Council, which includes representatives of
the tourism associations, regional associations and other bodies.
In 2016, the total budget for tourism marketing was EUR 2 million, including state
funding of EUR 500 000 plus co-funding from the European Regional Development Fund
(ERDF), and funds for the implementation of the EURO VELO 13 and EDEN projects. During
the period of ERDF funding (2014-2020), Latvia has allocated EUR 20 million to tourism
marketing and other promotional activities.
Latvia: Organisational chart of tourism bodies
Tourism Committee
of the
National Economy Council
Ministry of Economics
*Representatives of regional and professional
tourism associations
Tourism Advisory Council of the Investment

Investment and Development Agency of Latvia
and Development Agency of Latvia
Source: OECD, adapted from the Ministry of Economics, 2018.

Three main challenges have been identified for competitive and sustainable tourism
development:
● Decrease of average spending by tourists per day. During the evaluation of the Latvian
Tourism Guidelines for the period of 2014-2016, it has been noted that while the number

of tourists is rising and has exceeded the forecasts by 8%, the total expenditure has not
reached the expected rates due to a decrease of average spending per tourist per day.
● Strong tourism seasonality leading to fluctuations in business turnover. The average
occupancy rate in the low season falls to 30%, while in the high season it can reach
60-80%.
● Low competitiveness of Latvia as a tourism destination in the region, the EU and globally.
Latvia is relatively unknown as a tourism destination and it is important to raise market
awareness.
The Ministry of Economics has developed the Latvian Tourism Development
Guidelines for 2014-2020, which is the main tourism policy document. The overall goal is to
ensure sustainable growth of the Latvian tourism sector by facilitating the competitiveness
of Latvian tourism services in export markets.
Latvian tourism policy aims to increase the competitiveness of Latvian tourism supply by:
● Meeting the criteria of sustainable tourism product development,
● Encouraging international competitiveness,
● Reducing seasonal imbalance in tourism flows,
● Extending the average length of stay.
Overall, Latvia’s most competitive tourism sectors are MICE tourism, health tourism,
nature tourism, and cultural tourism and creative industries.
The policy response to the identified challenges has focused on the following activities:
● Improving the quality of tourism offer. In order to increase the average spending of
tourist per day, it is important to improve the quality of tourism offer to increase the
willingness of visitors to pay higher prices. The Latvian Tourism Development
Guidelines for 2014-2020 support only quality tourism product development. The
product has to be sustainable, offer innovative solutions, be export oriented, and offer
high quality with high added value.
● Improving education and skills in tourism. In order to improve the quality of services, it
is important to improve the education and skills of the service providers. The
qualifications of undergraduate students have been redesigned, with improved
efficiency in higher education in tourism and beauty/spa studies.
● Combating seasonality. Latvia has set MICE and wellness/health tourism as key priorities
in tourism development, to minimise the negative effects of seasonality.
● Improving competitiveness in the region. To increase Latvia’s competitiveness as a
tourism destination, Latvia has set the VAT rate for accommodation below the general
VAT rate, to ensure prices are regionally competitive.
The Investment and Development agency of Latvia is providing support for SMEs in
various activities to improve the international competitiveness of Latvia as a tourist
destination. Three main activities, financed through the European Regional Development
Fund (ERDF), include:
● Organising national stands in international tourism fairs and exhibitions abroad,
● Marketing and promotional activities,
● Financial support to SMEs for individual stands and participation in tourism-related
conferences and seminars abroad.

Statistical profile
Table 1. Latvia: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 12 149 | 12 151 11 413 10 691 12 197
Hotels and similar establishments 450 | 467 671 592 400
Specialised establishments 220 | 431 427 322 416
Other collective establishments 261 | 249 320 435 357
Private accommodation 6 748 | 6 142 7 029 5 193 6 060
Inbound tourism
Top markets
Germany 123 123 168 179 188
Lithuania 203 210 266 145 159
Estonia 121 146 181 139 145
Finland 65 72 80 83 101
Outbound tourism
Total international departures 2 265 | 1 777 1 846 1 719 1 939
Same-day visitors (excursionists) 867 | 530 484 478 689
Top destinations
Lithuania 152 | 123 134 171 231
Estonia 141 | 158 95 168 190
Russian Federation 131 | 162 138 121 36
Sweden 116 | 98 86 75 78
Germany 135 | 94 95 71 37
Inbound tourism
Total international receipts 833 896 935 1 024 783 p
International travel receipts 581 651 719 807 783 p
Outbound tourism
Total international expenditure 674 676 682 721 628 p
International travel expenditure 529 538 537 554 628 p
1 2 http://dx.doi.org/10.1787/888933640614

Table 2. Latvia: Enterprises and employment in tourism

Number of
establishments
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Hotels and similar establishments 444 2 500 e 3 200 4 600 5 000 4 700
Air passenger transport 16 2 400 e .. .. .. ..
Water passenger transport 35 2 000 e .. .. .. ..
Transport equipment rental 805 .. .. .. .. ..
960 2 700 2 600 e 2 800 2 400 1 500 e
industry
Cultural industry 1 999 12 900 13 300 12 300 12 800 15 600
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933640633

II. OECD COUNTRY PROFILES – LUXEMBOURG
Luxembourg

In 2016 it is estimated that tourism contributed 1.7% of Luxembourg’s GDP directly and
5.1% if indirect impacts are also included. Tourism accounted for 6 000 jobs directly, with a
total of 18 500 jobs being dependent either directly or indirectly on the sector (WTTC).
The number of overnight stays has risen steadily in the Grand Duchy of Luxembourg
since 2010. 2016 was a record year for tourism in Luxembourg with 3 million overnight
stays, an increase of 59% since 2010.
Luxembourg’s four main tourist markets are its neighbouring countries and the
Netherlands, which in 2016 accounted for over 62% of overnight stays, comprising of the
Netherlands (25.6%), Belgium (17.3%), Germany (11.2%) and France (8.3%). Other source
markets, such as the United States, China and Japan, are seeing ongoing growth. Domestic
tourism regularly accounts for around 10% of total overnight stays.

Since 2013, tourism has been under the responsibility of the Directorate General for
Tourism (DGT), within the Ministry of the Economy (“the Ministry”). In addition to regulating
tourism, the DGT coordinates the work of Luxembourg for Tourism (LFT), the national body
responsible for tourism development and promotion, as well as the Regional Tourist Boards
which coordinate the local services and cultivate the regional tourist offer. LFT defines and
implements the national marketing strategy to enhance the country’s international image
and reputation as a tourist destination, and also promotes Luxembourg as a destination for
business and conferences.
The Directorate General for Tourism also supports accommodation businesses,
associations and local administrations which promote tourism. The main aim is to develop
both the quality of tourism and quality of life. The Ministry is represented within
Luxembourg for Tourism’s decision-making bodies and regional tourism boards. In
addition, regular meetings are held to ensure coordination and effective collaboration
between the different parties. DGT is also responsible for assigning tourism labels, such as
for hotel and camping classification, service quality, EcoLabel, EureWelcome, or bed+bike.
A budget of EUR 45 million was allocated for the five year plan for tourism covering
2013-17. The approved annual budget for the Directorate General for Tourism in the
Ministry of the Economy has risen steadily since 2014, increasing from EUR 14.1 million in
2015 to EUR 14.6 million in 2016. Included in this amount are subsidies of EUR 3.7 million
for Luxembourg for Tourism and EUR 1.8 million for regional tourism stakeholders.

Luxembourg: Organisational chart of tourism bodies
Ministry of Economy – General

Directorate for Tourism
Luxembourg for Tourism (LFT) Regional Offices for Tourism (ORT)
Tourist Information Centres Local Governments
Source: OECD, adapted from the Ministry of Economy, 2018.

Tourism in Luxembourg is facing a number of challenges:
● Offer quality: this small destination that is not well known to tourists requires an
increasingly high-quality of offer and service to stand out from the competition,
● Tourist structures: at national, regional and local level, tourist structures need to be more
professionalised if they are to meet the current and future challenges of the tourist
industry,
● Digitalisation: the tourist sector will need to adapt to rapid developments,
● Accessibility: the tourist offer needs to develop so that it becomes accessible to everybody,
● Statistics: timely delivery of reliable data is crucial for tracking trends in tourism and
adapting accordingly,
● New growth markets: it is essential to adapt the offer to attract tourists from new growth
markets,
● Innovation: developing and supporting innovative tourism products,
● Transparency: ensuring transparency in the tourism offer, especially in the hospitality
sector.
In recent years, the Luxembourg government has put together a new medium- to long-
term strategy for the tourist industry, in close collaboration with national and regional
bodies, and based on a participatory approach. The strategy will shortly be made public.
A bill has been tabled to allow government to subsidise delivery of a tenth five-year
plan for boosting tourist infrastructure (2018-2022), supporting tourism professionals in
their efforts to develop tourism in Luxembourg and broaden the country’s tourism offer.
This will include tourism projects initiated by municipalities, associations, non-profit
organisations and private investors, as well as the owners or operators of various kinds of
tourist accommodation. The new five-year plan will also continue to subsidise the costs of
investment in programmes for certification of service quality.
To encourage development of a high-quality offer and ensure the greatest possible
transparency, in 2017 the government launched a new hotel classification system. Already
operated in many European countries under the patronage of HOTREC, Hotelstars Union
offers a harmonised hotel classification with common criteria across Europe. Participation
offers increased transparency and security to guests, enhancing the reputation and quality

of hotels in its member countries. The Ministry is implementing this classification in close
collaboration with HORESCA, the hotel federation. A new classification for camping sites
will be rolled out in autumn 2017.
Hiking holidays are a major tourism niche for the country, and the focus on
infrastructure quality for this market segment over the past ten years has led to two of its
major trails being awarded the highly coveted European label “Leading Quality Trails – Best
of Europe”.
Analysis of the current offer and benchmarking against the best European offers
provide the basis for Luxembourg to compete with top performers in hiking tourism by
2020. With rising expectations in a competitive growth market, it will be essential to invest
in clear, effective signposting, digital support and high-quality hiking infrastructure across
the country. The new concept encompasses not only the trail network, but also local
accommodation and food services, tourist attractions and cultural sights, as well as all
forms of mobility.
A further specific priority has been given to the development and promotion of the
MICE market in Luxembourg, where the MICE Luxembourg cluster was established by the
Ministry of the Economy in 2015. In addition, the government is working with the sector to
implement a number of development projects, including a timetable for MICE events,
business quality guidelines, and a Green Meetings project designed to promote and
showcase ecologically responsible events (Box 1.11).

Statistical profile
Table 1. Luxembourg: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Nights in all types of accommodation 233 311 340 313 306
Inbound tourism
Overnight visitors (tourists) 950 945 1 038 1 091 1 054
Top markets
Belgium 193 190 203 211 210
Netherlands 170 164 176 180 178
Germany 129 137 147 152 152
France 131 126 141 141 139
Outbound tourism
Total international departures .. .. 2 944 2 497 2 138
Same-day visitors (excursionists) .. .. 1 428 1 045 745
Top destinations
France 363 384 322 306 255
Germany 256 272 272 272 253
Spain 112 102 128 113 119
Belgium 148 154 135 107 91
Italy 115 97 108 94 107
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933640671

Table 2. Luxembourg: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 389 .. .. .. .. ..
Accommodation services for visitors 322 .. .. .. .. ..
67 .. .. .. .. ..
industry
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640690

II. OECD COUNTRY PROFILES – MEXICO
Mexico

It is estimated that tourism contributes approximately 8.7% of the total GDP in Mexico.
The sector provides 2.3 million fulltime jobs (5.9% of fulltime paid employment), rising to
around 10 million jobs in total including informal employment. Tourism accounts for over
79.9% of exports in services. Overall, economic and employment growth in tourism has
been faster than in the rest of the economy.
Mexico received 35 million international arrivals in 2016, a 9% increase over the
previous year. It is estimated that this figure could reach 37.5 million in 2017. By far the
largest source market is the United States, followed by Canada and Argentina. However, the
general pattern has been towards greater market diversification, with arrivals from the
United States reducing as a proportion of total arrivals over the past ten years, as a result
of faster growth from Latin America and Asia. This is linked to the opening of new
international air routes, including three new direct flights from Asia in 2017 (Seoul, Canton
and Tokyo). In terms of domestic tourism, the number of Mexican nationals staying in
hotels is estimated at around 91.5 million, with an annual growth rate of 2.8%.

The Ministry of Tourism is the lead government body with responsibility for tourism
policy, planning, development, quality and regulation.
The Mexico Tourist Board (CPTM) is responsible for promoting the tourism brand and
for developing and coordinating international and national strategies for tourism
marketing. CPTM aims to strengthen the image of Mexico as a tourist destination
promoting the quality, diversity and authenticity of its attractions.
The National Fund for Tourism Development (FONATUR) acts as a facilitating
instrument for foreign investors. It was created by the Ministry of Finance and is coordinated
by the Ministry of Tourism. FONATUR’s objectives are to promote investment, create jobs,
improve social welfare and encourage national and regional development. It engages in the
development of destinations and tourism products. FONATUR’s functions include
conducting feasibility studies, developing destination master plans, project management,
executing infrastructure projects and engagement with various forms of financing.
State and local level bodies have the right to promote and finance their destinations
and to collect room taxes. Coordination with the state and local levels of government is
undertaken by several commissions, including the Governor’s Commission for Tourism
and the association of local ministers of tourism.
In 2017 the budget for tourism in Mexico amounted to USD 441 million. This figure
consisted of around USD 219 million for the Ministry of Tourism, USD 188 million for

FONATUR and USD 34 million for the Mexico Tourist Board. The latter also obtains
significant resources from an entry tax charged on tourists. Much of the funding for the
tourism sector also occurs at the local level and from public and private initiatives.
Mexico: Organisational chart of tourism bodies
FONATUR Ministry of Tourism Mexico Tourism Board
State (Local Government)
Under Secretariat for Under Secretariat for Under Secretariat for

Innovation and Tourism Planning and Tourism International Affairs Tourism Quality and Administrative Office Municipal (District Government)
Development Policy and Cooperation Unit Regulation
Tourism Product Sectorial and Regional

Tourism Planning Management
Innovation Coordination Unit Standardisation and
Quality Tourism
Regulation
Management of Sectorial Information Program and Budget
Destinations Integration
Tourism Certification Tourism Industry

Regional Development Sustainable Territorial IT and Communication
and Tourism Promotion Planning
Verification and
Tourism Financing and Sanction
Monitoring and
Investment Non-governmental
Evaluation
Organisations, Universities
and Civil Society
Green Angels Tourist Institute for Tourism

Service Corporation Competitiveness

The overall National Development Plan 2013-2018 recognises the importance of
tourism for creating jobs, developing markets for SMEs and preserving the natural and
cultural richness of the country. Derived from this, the Tourism Sectoral Plan 2013-2018 has
five objectives:
● Transform the tourism sector and strengthen collaboration schemes and joint
responsibilities to tap the tourism potential,
● Strengthen the comparative advantages of the tourism offer,
● Facilitate financing and public-private investment in projects with tourism potential,
● Boost tourism promotion in order to contribute to the diversification of markets and
increase development and growth of the sector,
● Promote sustainable development of tourism destinations and increase the social and
economic benefits for the recipient communities.
The main challenges facing the tourism sector in Mexico include sustainability, a
competitive business environment, connectivity, infrastructure and social responsibility. In
this context, three policy priorities have been identified:
● Careful planning and regulation of urban growth and the use of natural resources and
public services to meet the needs of tourism and of the local population,

● Establishing a model for tourism development in destinations that addresses the viability of
tourism activity while strengthening local communities and involves all types of stakeholder
(three levels of government, civil society, NGOs, academia and the private sector),
● Maximising the retention of wealth generated in the regions, minimising imports of
goods and services and increasing employment for local people.
The Programme for Tourism Territorial Planning provides the basis for the responsible
development of tourism destinations. A new programme, called Zones for Sustainable
Tourism Development, is underway and seeks to implement destination plans, along with
local governments, that address territorial, geographical, economic, social, cultural,
educational and environmental issues. This program seeks to combine and incentivise
with federal funding, an increase in state, municipal and private investments.
The Tourism Board has developed a program dedicated to the promotion of domestic
tourism (which represents 85% of all tourism in Mexico), called “Let’s All Travel for Mexico”
(Viajemos Todos por México), which encourages domestic travel, diversification of tourist
products, and the reduction of seasonality.
The Board is involved in organising fairs and events to promote the tourism sector. An
example of this is the Tianguis Turístico, an unique business forum in which national and
international buyers meet with Mexican companies to develop business relationships. In
addition they continue to improve and innovate the “Magical Towns” program, which has
helped to diversify the market and encouraged regional development.
An advisory board has been created to help execute the strategic lines of action for
medical tourism, including product, quality, investigation, integration, financing,
facilitating and promotion. Currently 10 medical tourism clusters have been identified. The
competitiveness of these clusters will be derived from their proximity to source markets,
world class medicine and infrastructure, competitive pricing relative to other destinations,
connectivity, public image and customer service.
An initiative has been introduced, together with the private sector, to develop the
capacity of employees in the tourism sector and to improve their quality of life. It includes
a programme for the construction of accommodation for employees, close to tourist
centres, thereby reducing pollution and travel times.
A policy has been introduced to promote the application of new technology in the
tourism sector, aimed particularly at analysing and facilitating visitor flows, mobility and
interaction with service providers. It focuses on certain destinations such as Smart Cities
and on visitor arrivals, through a Digital Borders initiative.
In response to the UN global initiative in 2017, an event was held in Acapulco at which
state tourism authorities (subnational), representatives from the private sector, academia,
environmental organisations and international non-governmental organisations, signed
the National Commitment for Sustainable Tourism for Development. Two particular areas
of action relating to this commitment include:
● Adjustment of legislation and development programmes relating tourism to the
conservation of biodiversity and the environment, as outlined by the Conference on
Biological Diversity (COP 13) held in Mexico in 2016.
● Commitment to actions in the National Code of Conduct for the Protection of Children
and Adolescents in the Travel and Tourism Sector, as an instrument to support good
employment practices and address social impacts.

Statistical profile
Table 1. Mexico: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Overnight visitors (tourists) 74 668 78 527 80 746 85 939 89 874 p
Inbound tourism
Top markets
United States 18 658 18 940 23 399 24 094 24 261
Canada 1 572 1 599 1 677 1 749 1 781
United Kingdom 363 414 459 506 545
Spain 279 282 310 333 361
France 203 200 214 222 234
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
International passenger transport receipts 581 362 399 995 969
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933640728

Table 2. Mexico: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. 2 131 440 2 153 084 p 2 180 896 p 2 229 801 p 2 271 112 p
Tourism industries 104 848 p 1 498 625 1 521 294 p 1 546 054 p 1 592 052 p 1 627 250 p
Accommodation services for visitors .. 179 045 182 832 p 188 920 p 198 140 p 203 846 p
Hotels and similar establishments 21 085 p .. .. .. .. ..
Food and beverage serving industry 76 785 p 609 733 620 109 p 619 663 p 639 360 p 658 096 p
Passenger transport .. 518 965 524 890 p 540 357 p 555 270 p 566 670 p
6 978 p 19 192 19 373 p 20 018 p 20 381 p 20 648 p
industry
Cultural industry .. 42 286 38 416 p 42 702 p 43 702 p 44 031 p
Sports and recreation industry .. 56 185 57 191 p 56 512 p 55 646 p 56 110 p
.. 73 219 78 483 p 77 882 p 79 553 p 77 849 p
Other industries .. 632 815 631 790 p 634 842 p 637 749 p 643 862 p
1 2 http://dx.doi.org/10.1787/888933640747
Table 3. Mexico: Internal tourism consumption

Million MXN
2016
Total .. .. ..
Consumption products 2 156 993 p 462 813 p 2 619 806 p
Tourism characteristic products 1 951 601 p 461 562 p 2 413 163 p
25 904 p 780 p 26 684 p
industry
Country-specific tourism characteristic goods 392 534 p 94 283 p 486 816 p
1 2 http://dx.doi.org/10.1787/888933640766

II. OECD COUNTRY PROFILES – NETHERLANDS
Netherlands

The importance of domestic and inbound tourism for the Netherlands remains high,
with both providing a substantial impetus to the Dutch economy. In 2016, direct tourism
GDP was estimated to be EUR 24.8 billion (up 5.9%), representing 3.9% of total GDP. Over the
same period, the number of persons directly employed in tourism was estimated to be up
2.6% to 389 000 (full-time equivalents), which accounted for 5.5% of total employment.
Overnight international arrivals grew to 15.8 million in 2016, representing an increase
of 5.5% on 2015 but down slightly on recent years (7.8% in 2015 and 8.9% in 2014). Inbound
travel receipts totalled EUR 12.8 billion in 2016, up 22.1% on the previous year and
accounting for 1.5% of total exports (up from 1.2% in 2014). As in previous years, Germany
provided the largest proportion of international visitors (29%), with a growth of 7.8% on
2015. The other leading foreign markets were Belgium (13.5%), the United Kingdom (13%)
and the United States (5%).
In 2016 domestic overnight trips totalled 23.1 million (up 3%) and generated
21.4 million nights in hotels and similar establishments. Domestic tourism expenditure
amounted to EUR 54.7 billion, or 72.2% of total internal tourism consumption.

The Ministry of Economic Affairs (the “Ministry”) is responsible for tourism policy at
the national level. Responsibilities include:
● Partial funding of the Netherlands Board of Tourism and Conventions (NBTC) Holland
Marketing, which is responsible for international marketing of the Netherlands and
attraction of international conventions,
● Stimulating innovation, entrepreneurship and sustainability,
● Stimulating synergy between nature, recreation and entrepreneurship,
● Acting as first point of contact within government for tourism industry associations and
stakeholders,
● Improving the business climate for the hospitality sector by reducing the regulatory
burden.
Regional and local authorities are responsible for tourism policy at their respective
levels. They deal with tourism matters such as funding regional and local destination
marketing organisations, responsible for both domestic and international marketing, and
with product development.
NBTC Holland Marketing uses a private public partnership model to create the
co-operation necessary to organise marketing programmes, enabling a variety of different

partners to bundle their budgets and other investments around a shared goal or interest.
They can be public partners (national, provincial and municipal authorities or regional
tourist boards), public-private partners (marketing and promotional organisations) and
private partners (businesses in the visitor sector and related sectors) in the Netherlands
and other countries.
In 2016 the Ministry of Economic Affairs provided NBTC Holland Marketing with a
grant of EUR 8.5 million.
Netherlands: Organisational chart of tourism bodies
Ministry of Economic Affairs Local Governments
NBTC
Local Tourist Boards
Holland Marketing
Tourism Industry
Source: OECD, adapted from the Ministry of Economic Affairs, 2018.

In 2013, the hospitality sector brought together a high level group of entrepreneurs,
knowledge and marketing institutes, and representatives of the Ministry. The group’s
ambition for the hospitality economy is that, by 2025, the Netherlands will be the country
with the greatest diversity of experiences in the world. Their aim is to offer excellent
hospitality, a competitive sector, and an attractive society. In turn, this will promote a
healthy business climate to encourage foreign companies to invest in the Netherlands.
The strategic vision is based on three concepts:
● Find: guests do not want to go searching but wish to find things and be surprised at what
they discover,
● Surprise: it is essential to provide excellent hospitality with an innovative choice of
offers and concepts,
● Connect: guests like to combine different experiences within the Netherlands and
beyond geographical borders. Closer co-operation with companies and organisations
within and outside the sector improves access to what is on offer and creates a
surprising and innovative range of options.
Based on this vision, an action agenda was defined for each of seven themes:
innovation, human capital, technology, marketing, deregulation, nature, spirituality and
social involvement.
Organisations representing the hospitality sector, nature and consumer organisations
have become involved in this networking approach.

In 2017, a final report demonstrated that the action agenda has led to stronger
collaboration within the sector. The Ministry wishes to see this collaboration continue,
with an emphasis on collaboration between national and regional authorities, and private
parties.
HollandCity is a recent example of a collaborative approach based on a new concept of
destination level identity and the delivery of visitor experiences.
Spreading tourism to destinations in the Netherlands

Together with NBTC and the provinces, the Ministry of Economic Affairs aims to promote
the sustainable growth of tourism through a more balanced distribution of the increasing
numbers of tourists throughout the year and across the country.
Attractions located outside of major centres enable regions to profit from the economic
benefits of tourism, while helping to prevent tourism from becoming concentrated in just
a few places. Building on this philosophy, the HollandCity concept was developed by NBTC
and industry partners to present the Netherlands as one large metropolis, inspiring
visitors to step off the beaten track through a three-pronged strategy focused on events,
districts and storylines, built around an imaginary metro network.
HollandCity’s imaginary storylines link different places across the country through a
common theme. For example, visitors are inspired to enrich their experience of the
Netherlands through exploring Van Gogh’s connections not only with Amsterdam, but also
the Arnhem region and Brabant. Good connectivity between the different places within
each storyline is essential.
Attractive events can help to distribute visitors throughout the country, and also attract
visits in the off-season. Cultural and regional themes have been used successfully to
promote the Netherlands. In 2016, for example, domestic and overseas promotions
focused on “Jheronimus Bosch 500”, with a year-long programme on the 500th anniversary
of the artist’s death, while 2017 showcases “Mondrian to Dutch Design”. To date, eleven of
the twelve Dutch provinces are participating and, over the next two years, NBTC will work
with the provincial authorities and market operators to introduce additional storylines.

Statistical profile
Table 1. Netherlands: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Germany 3 209 | 3 495 3 894 4 283 4 615
Belgium 1 537 | 1 673 1 828 1 965 2 132
United Kingdom 1 662 | 1 680 1 857 1 967 2 045
United States 1 381 | 1 337 1 431 1 508 1 646
France 666 | 680 725 750 788
Outbound tourism
Top destinations
Germany 3 400 3 183 3 377 3 375 3 519
France 2 798 2 677 2 606 2 617 2 550
Spain 1 796 1 759 1 856 1 969 2 177
Belgium 1 811 1 766 1 425 1 430 1 341
Austria 1 233 1 178 1 113 1 157 1 104
Inbound tourism
Outbound tourism
International passenger transport expenditure 246 235 1 983 1 718 ..
1 2 http://dx.doi.org/10.1787/888933640785

Table 2. Netherlands: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. 487 000 495 000 515 000 530 000 542 000
.. .. .. .. .. ..
industry
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640804
Table 3. Netherlands: Internal tourism consumption

Million EUR
2016
Total 54 716 21 029 75 745
Tourism characteristic products .. .. ..
Accommodation services for visitors .. .. ..
Food and beverage serving services .. .. ..
.. .. ..
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933640823

II. OECD COUNTRY PROFILES – NEW ZEALAND
New Zealand

In the year ended March 2016, tourism directly contributed NZD 12.9 billion, or 5.6%, of
New Zealand’s total GDP. The indirect value added by industries supporting tourism
generated an additional NZD 9.8 billion for tourism, or 4.3% of GDP.
Tourism is New Zealand’s largest export earner, having accounted for 20.7% of exports
in the year ended March 2016. It directly employed 188 136 people, 7.5% of the total
workforce, and generated NZD 2.8 billion in goods and services tax revenue.
International tourism expenditure increased 19.6% in the year to March 2016, to
NZD 14.5 billion, while domestic tourism expenditure increased 7.4% over the same period,
to NZD 20.2 billion.
In the year ended August 2017, international arrivals to New Zealand were 3.7 million.
New Zealand’s largest visitor markets over this period were Australia (accounting for 40%
of arrivals), China (11%) and the United States (9%). Australian arrivals grew 6% from the
previous year, and United States grew 21%. Growth from China softened, with arrivals up
less than 1% following a period of much higher growth (21.7% in 2015/16).
The Ministry of Business, Innovation and Employment (MBIE) has forecast that visitor
arrivals to New Zealand will grow at an annual rate of 4.8% over the 2017-2023 period,
reaching 4.9 million visitors in 2023. International visitor spend is expected to grow 6.2%
annually over the same period, and reach NZD 15.3 billion.

MBIE provides advice to the Minister of Tourism and across government on creating
the right environment for enhanced productivity and growth in the tourism sector in order
to increase tourism’s contribution to the New Zealand economy and to regional economies
across New Zealand.
Tourism New Zealand (TNZ) is a Crown Entity which markets New Zealand as an
international visitor destination. Its statutory functions are to develop, implement and
promote strategies for tourism and to provide related advice to the government and
tourism industry. Two subsidiary organisations, Qualmark Limited, and Visitor Information
Network Incorporated, work to improve visitor satisfaction and product quality.
A central government Tourism Chief Executives’ group was established in 2016 to help
coordinate tourism-related activities within government. The group includes Chief
Executives from MBIE, TNZ, the Department of Conservation (DOC), the Ministry of
Transport (MOT), the New Zealand Transport Agency (NZTA), the Ministry of Culture and
Heritage, and the Department of Internal Affairs. It provides strategic oversight, facilitates

information sharing, removes roadblocks and helps manage relationships across the
diverse range of Ministers whose portfolios intersect with the tourism sector.
Thirty Regional Tourism Organisations (RTOs) are responsible for promoting regional
destinations to domestic and international visitors. RTOs are funded and governed by local
and regional governments, and/or supported by annual membership fees from the local
tourism industry. RTOs act as a bridge between tourism operators, national tourism bodies,
and local and central government. Their interests are represented by Regional Tourism
Organisations New Zealand, a membership-based and funded organisation which has
regular engagement with MBIE.
The government budget appropriation related to tourism for 2017/18 is NZD 175.5 million,
comprising:
● Marketing New Zealand as a visitor destination (NZD 117.4 million, managed by TNZ),
● Tourism Infrastructure Fund (NZD 25.5 million, administered by MBIE),
● Policy advice and related services (NZD 4.1 million),
● Tourism data and analysis (NZD 3.2 million, managed and provided by MBIE),
● Nga Haerenga, the New Zealand Cycle Trail (NZD 13.4 million),
● Tourism Facilities Development Grants for non-commercial tourism facilities and services
(NZD 5.8 million),
● Tourism Growth Partnership (NZD 6.1 million).
New Zealand: Organisational chart of tourism bodies
Minister
of Tourism
Ministry of Business, Innovation Tourism Chief

Tourism New Zealand
and Employment Executives’ group
I-site Visitor
Local Government
Information Network
Corporate, Governance Labour, Science and

and Information Group Enterprise Group Qualmark Industry
Tourism, Sectors,
Evidence, Monitoring
Regions and Cities
and Governance Branch
Branch
Sector Trends
New Zealand Major

Tourism Policy
Events
Source: OECD, adapted from the Ministry of Business, Innovation and Employment, 2018.

In December 2015, Tourism Ministers approved the Government Tourism Strategy,
which aligns and coordinates government efforts to boost the economic contribution of
tourism across the country, and plan for the future. The strategy aligns with the industry-
led growth framework, Tourism 2025. It identifies three broad challenges and priority areas
for government, aimed at driving higher value from the tourism sector:

● Attracting the right mix of visitors to give the greatest return on marketing investment,
balancing established, high growth and emerging markets (Box 2.1); and better
managing visitor flows to help smooth seasonal peaks and troughs.
● Ensuring continued provision of high-quality visitor experiences through good infrastructure,
skilled and committed people, and by responding to challenges placed on communities,
services and infrastructure by higher visitor numbers.
● Supporting regions to benefit from increasing visitor numbers and ensuring that
opportunities to host tourists are available to all regions of New Zealand.
In March 2017, TNZ released a revised four-year strategy, with priorities to: target near
and long-term value, including through the shoulder season and regional growth;
strategically manage markets and sectors; and work with others to sustain and improve
the experience of tourism for all. To address seasonality issues, TNZ currently allocates all
of its marketing spend to promoting the shoulder seasons.
The government also invests in major events that generate significant, immediate,
and long-term benefits for New Zealand and align with wider government objectives.
These events may attract significant numbers of international visitors as participants and
spectators, or generate significant media coverage in markets of interest for tourism and
business opportunities. Preferential consideration may also be given to events which are
timed to fall within off-peak or shoulder tourism periods. The New Zealand Major Events
unit located within MBIE works across government, including with TNZ, to provide advice
to Ministers and to identify, attract and leverage major events. It administers the
contestable Major Events Development Fund, which has a current annual appropriation of
NZD 10 million, much of which is committed several years in advance.
Several initiatives are in place to support the growth of regional tourism. DOC is
expanding New Zealand’s Great Walks network by adding two new Great Walks, and
promoting a network of Great Short Walks and Great Day Walks. By developing and
promoting areas of the conservation estate which are less well-known, the new Great Walks
and the refreshed promotion of Great Short and Day Walks will encourage dispersal while
relieving pressure on hotspots. The government also continues to invest in enhancing and
extending Nga Haerenga, the New Zealand Cycle Trail, to encourage visitor flows into the
regions.
In New Zealand, the government releases a Government Policy Statement (GPS) on
land transport to signal government priorities that influence transport investment
decisions across the country. Tourism was emphasised in the draft GPS 2018 to ensure that
roads and supporting infrastructure used by visitors were fit for purpose.
New Zealand Trade and Enterprise, a Crown Entity, facilitates connections between
investors and potential hotel projects to address accommodation constraints in New
Zealand’s main tourism centres.
The government established the Regional Mid-sized Tourism Facilities Grant Fund (MFF)
in Budget 2016 to support local tourism infrastructure development. To help maintain high-
quality visitor experiences, a Tourism Infrastructure Fund (TIF) replaced the MFF in 2017. The
TIF provides up to NZD 25 million per year over four years as co-funding for the development
of tourism-related infrastructure that contributes to quality experiences for visitors,
particularly in areas where the local population is too small to completely fund the work
themselves (Box 1.4).

Statistical profile
Table 1. New Zealand: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Overnight visitors (tourists) 16 599 .. .. .. ..
Nights in all types of accommodation 49 753 .. .. .. ..
Inbound tourism
Top markets
Australia 1 156 1 218 1 248 1 327 1 409
China 197 229 265 356 409
United States 178 201 221 243 291
United Kingdom 190 192 194 204 221
Japan 72 75 81 87 101
Outbound tourism
Top destinations
Australia 990 1 018 1 091 1 137 1 176
United States 122 142 165 177 197
Fiji 105 112 130 146 160
United Kingdom 96 97 101 112 110
China 66 73 77 86 101
TOURISM RECEIPTS AND EXPENDITURE, MILLION NZD
Inbound tourism
Total international receipts 10 292 10 589 11 687 14 539 15 512 e
International passenger transport receipts 1 495 e 1 569 e 1 532 e 1 563 e 1 667 e
Outbound tourism
Total international expenditure 5 819 5 933 6 155 6 587 6 884 e
International passenger transport expenditure 1 234 e 1 216 e 1 205 e 1 231 e 1 153 e
1 2 http://dx.doi.org/10.1787/888933640842

Table 2. New Zealand: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. 176 883 174 477 175 284 181 500 188 136
Accommodation services for visitors 3 089 23 145 23 010 .. .. ..
Food and beverage serving industry .. 48 738 48 072 .. .. ..
Passenger transport .. 13 035 12 849 .. .. ..
Air passenger transport .. 9 465 9 288 .. .. ..
Passenger transport supporting services .. 5 574 5 529 .. .. ..
Transport equipment rental .. 4 104 3 987 .. .. ..
.. .. .. .. .. ..
industry
Cultural industry .. 6 738 7 008 .. .. ..
.. 30 345 28 398 .. .. ..
Other country-specific tourism industries .. 12 834 12 891 .. .. ..
Other industries .. 32 376 32 736 .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640861
Table 3. New Zealand: Internal tourism consumption

Million NZD
2016
Total .. .. ..
.. .. ..
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933640880

II. OECD COUNTRY PROFILES – NORWAY
Norway

In the ten-year period to 2015, the value creation attributable to tourism in Norway
increased considerably, to reach NOK 110 billion. This figure represents 3.6% of total GDP, a
share that has remained relatively stable in recent years. In 2015, the Norwegian tourism
industry employed around 160 000 people, representing 6.5% of total employment in Norway.
Domestic tourism, for both leisure and business purposes, dominates the tourism
industry in Norway. In 2016, Norwegians made up 71% of all commercial overnight stays.
Inbound tourism has, however, seen a considerable increase in the last couple of years,
including a 10% increase in 2016 alone. Exchange rate conditions in 2016 continued to benefit
inbound tourism, making a visit to Norway less expensive. Key inbound markets are Sweden,
Germany and Denmark, but emerging markets such as China have seen a sharp increase.

The main responsibility for development and regulation in the tourism industry lies
with the Ministry of Trade, Industry and Fisheries (the “Ministry”). The Ministry co-operates
with other ministries in order to coordinate policies of importance to the tourism industry.
One example is the extended co-operation with the Ministry of Culture in order to
showcase the potential for increased value creation through closer co-operation between
the cultural and creative industries and the tourism industry. The Ministry of Climate and
Environment is another key partner, given its role in developing policies to promote a more
sustainable tourism industry.
Regional and local authorities also influence tourism activities throughout the
country. They establish framework conditions of key importance to tourism, being in
charge of planning and regulation in areas such as infrastructure, utilities, national parks
and numerous local attractions linked to nature and cultural heritage. A number of regions
and municipalities have put in place strategies for tourism in their areas of responsibility,
and many also give financial support to their local destination management company.
In 2016, the Norwegian Government proposed to restructure regional government, with
renewed roles, structures and responsibilities and a reduction in the number of counties. The
purpose was to provide a more efficient framework to coordinate activities and solve cross-
sectoral challenges. This will be of benefit to the tourism industry, as many of the challenges
facing the industry are cross-sectoral. Municipalities have undergone a similar process.
Innovation Norway is a state-owned company that functions as the National Tourism
Administration. Its main goal is to increase overall economic growth and to increase value
creation in the tourism industry. Innovation Norway focuses on product and business
development, as well as international promotion of Norway as a tourist destination, and

brand building. This is achieved through various projects and activities, in close partnership
and co-operation with the tourism industry. Innovation Norway is funded by the Ministry of
Trade, Industry and Fisheries (majority owner), as well as other ministries and counties.
In both 2017 and 2018, NOK 231.5 million are allocated (annually) to the tourism
industry through transfers from the Ministry of Trade, Industries and Fisheries to the
National Tourism Administration Innovation Norway.
Norway: Organisational chart of tourism bodies
Ministry of Trade,
Industry and Fisheries
Economic Policy
Department
Co-operation with other Ministry of Local Government

Ministries and Modernisation
Counties Municipalities
Innovation Norway
(National Tourism
Administration)
Source: OECD, adapted from the Ministry of Trade, Industry and Fisheries, 2018.

One of the key challenges facing the Norwegian tourism industry is its relatively low level
of value creation and profitability compared to that of other industries. This is due to factors
such as the low share of high value added tourism products, a high level of seasonality, and
lack of co-operation both within the tourism industry itself and with other stakeholders
involved in tourism. In certain parts of the country, overcrowding is a major issue.
In May 2017, the Parliament approved a government report (white paper) on
Norwegian tourism. The report lays out the Government’s overall policy for the tourism
industry, including the ways in which the Government will strengthen the foundation for
the industry’s development in the longer term.
The report concluded that the main national policy priorities for developing the
Norwegian tourism industry are:
● Establishing sound framework conditions for business activity in Norway by lowering
levels of business tax, improving infrastructure, digitalising the public sector,
● Developing a sustainable tourism industry,
● Increasing co-operation between stakeholders,
● Continuing to promote Norway as a tourism destination,
● Increasing knowledge and expertise in the tourism industry.
As the Government amends framework conditions in order to strengthening the
business climate in Norway, the tourism industry is one beneficiary. The Government is

prioritising tax and fee relief for Norwegian companies and is focused on simplification
and digitalisation of the public sector, so companies can spend less time on their reporting
duties and following regulations, and more time creating value and jobs.
Accessibility is another key factor to competitiveness in tourism. In 2017, the Norwegian
Parliament approved the next 12-year national plan for infrastructure in Norway, with a
record high level of investment. The plan has a focus on developing safer, more efficient and
greener transport solutions, by utilising, and adapting to, the massive technological changes
taking place within the sector.
Increased co-operation between the tourism industry and other parts of the economy
can contribute to developing Norwegian destinations and tourism products further. The
white paper on tourism concluded that a joint strategy for culture and tourism will be
prepared by Government. This strategy will be in parallel to the Government’s agriculture
based rural tourism strategy, presented in January 2017.
In order to improve coordination within the tourism industry, both public and private
initiatives have been taken to put in place more effective destination management
organisations. In 2013, overall responsibility for a restructuring exercise of these
organisations was given to the industry itself. New and considerably larger destination
management entities have been designed to secure more reliable and stable financial
arrangements, as well as facilitating coordination between the local tourism industry and
tourism activities undertaken by local public authorities. By 2017, the process was almost
completed, with the new local management boards up and running and showing initial
indications of enhanced coordination and co-operation between stakeholders.
Nature is a significant aspect of what the Norwegian tourism industry markets. Over
time, increased traffic and crowding could undermine the quality of the surroundings, the
tourism product and even affect safety. In order to achieve national and international
environmental goals, the tourism industry must base its activities on sustainability. The
Government will promote management of human traffic in nature by providing
information, signage and simple infrastructure. As part of this effort, the Government will
market a selection of prepared hiking trails as National Hiking Trails, on the model of
Norway’s National Tourist Routes for roads. The objective is to make the trails sustainable
and more accessible, and thus attractive for travel and business activity.

Statistical profile
Table 1. Norway: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Specialised establishments 480 2 120 1 660 1 250 ..
Other collective establishments 10 460 11 370 11 330 9 310 1 710 |
Inbound tourism
Overnight visitors (tourists) .. 4 938 e 4 842 e 5 304 e 5 960 e
Top markets
Germany .. 870 e 878 e 919 e 1 095 e
Sweden .. 612 e 611 e 612 e 679 e
Great Britain .. 335 e 348 e 389 e 419 e
Netherlands .. 337 e 320 e 338 e 405 e
Denmark .. 418 e 374 e 376 e 402 e
Outbound tourism
Top destinations
Sweden 1 789 1 770 1 478 1 535 1 222
Spain 1 202 1 395 1 234 1 242 1 290
Denmark 906 890 1 127 937 825
United Kingdom 680 777 676 674 654
Germany 609 542 620 498 452
TOURISM RECEIPTS AND EXPENDITURE, MILLION NOK
Inbound tourism
Outbound tourism
.. Not available; | Break in series; e Estimated value
1 2 http://dx.doi.org/10.1787/888933640899

Table 2. Norway: Enterprises and employment in tourism

Number of
establishments
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 24 115 153 000 153 700 156 800 158 400 p ..
Accommodation services for visitors 3 273 23 200 23 400 24 200 24 700 p ..
Food and beverage serving industry 10 762 42 000 43 800 45 500 46 500 p ..
Passenger transport 7 652 49 800 50 100 50 300 50 600 p ..
Air passenger transport 125 7 200 7 200 7 000 7 200 p ..
Railways passenger transport 57 4 500 4 600 4 600 4 600 p ..
Road passenger transport 7 014 28 500 28 600 28 800 29 000 p ..
Water passenger transport 456 9 600 9 700 9 900 9 800 p ..
Transport equipment rental .. 7 200 7 000 7 200 7 200 p ..
2 428 5 300 5 200 5 200 5 200 p ..
industry
Cultural industry .. 18 600 17 500 17 600 17 700 p ..
Sports and recreation industry .. 6 700 6 800 6 800 6 600 p ..
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933640918
Table 3. Norway: Internal tourism consumption

Million NOK
2015
Total .. .. ..
Railways passenger transport services 2 349 p 649 p 2 998 p
Road passenger transport services 4 066 p 617 p 4 683 p
Water passenger transport services 6 150 p 2 568 p 8 718 p
Transport equipment rental services 367 p 267 p 634 p
17 596 p 294 p 17 890 p
industry
Cultural services 1 291 p 554 p 1 845 p
Sports and recreation services 1 628 p 734 p 2 362 p
1 2 http://dx.doi.org/10.1787/888933640937

II. OECD COUNTRY PROFILES – POLAND
Poland

The total value of the tourism economy in Poland was estimated at PLN 110.3 billion in
2016, a rise of 7.7% over 2015. This equates to a contribution of 6% to Poland’s GDP.
International visitor arrivals increased by 3.6% to 80.5 million in 2016. This includes
17.5 million tourist arrivals, a rise of 4.8% over 2015 and a new record for Poland since joining
the Europe’s Schengen Area in 2007. Germany remains the largest source market, accounting
for 36% of international tourist arrivals. International tourism receipts increased by 6.9% to
reach PLN 57.6 billion in 2016, accounting for 6% of total export earnings.
The number of domestic trips totalled 43.5 million in 2016, a rise of around 9% on 2015.
A majority of domestic trips were short visits of 2-4 days (60.9%). Revenues from domestic
tourism increased by 17.8% to PLN 21.8 billion in 2016.
In 2015, 252 300 people were employed in the accommodation and catering sector,
compared with 248 700 in 2014.

The Ministry of Sport and Tourism (the “Ministry”) is responsible for tourism-related
matters, including management and regulation of tourism in Poland and the Polish
Tourism Organisation (POT).
The main activities of POT include: the promotion of Poland as an attractive tourism
destination; operation and development of domestic and international tourism
information systems; and the initiation, assessment and support for plans to develop,
renovate or rejuvenate tourist infrastructure. POT has 14 international offices in important
current and future source markets.
Many aspects of national policy that affect tourism reside outside the responsibility of
the Ministry, while many tasks affecting tourism development fall within the remit of
regional and local governments. POT also co-operates with regional and local tourism
organisations and autonomous bodies involved in tourism promotion and development at
a regional and local level, based on a partnership of equal rights.
At sub-national level, the primary role in tourism development is played by regional
governments (Voivodships) and local governments (Poviats at the county level and Gminas at
the municipality level). Local or regional tasks fall into two groups: i) public sector tasks
that are not allocated elsewhere by relevant legislation, and ii) tasks commissioned by the
National Government Administration.

Commissioned tasks include supervision, registration, licensing and compliance with

various standards of travel agents and tour operators, mountain guides, and also the
classification of hotel facilities.
Municipalities are responsible for keeping registers of campsites and non-hotel
accommodation service providers, inspecting accommodation facilities, and applying
sanctions if necessary.
Poland: Organisational chart of tourism bodies
Ministry of Sport and Tourism
Tourism Department
International Planning and

Polish Tourism Organisation Cooperation and Tourism Economy & Financial Legislation
Dissemination
Market Research in Tourism Staff Team Team Team
Tourism Unit Unit
Voivodships Marshals (16)

Regional Tourist Organisations (Heads of Regional Authorities)
Local Tourist Organisations
supervision
collaboration
Ministry of Sport and Tourism supervises Marshals only for the implementation of the Tourist Services Act
Source: OECD, adapted from the Ministry of Sport and Tourism, 2018.
In 2016, the budget of the National Tourism Administration amounted to

PLN 50.3 million, including PLN 39.4 million for the Polish Tourist Organisation. In addition,
specific tourism sector projects were supported by EU structural funds during 2014-20. The
above figures do not include regional and local government budgets, which together
accounted for additional spending of PLN 198 million on tourism in 2016.

The main objective of Poland’s national policy is to strengthen the development of
competitive and innovative tourism through the support of enterprises, organisations,
institutions and initiatives in the tourism sector, while respecting the principles of
sustainable development.
This comprehensive approach is focused on the following priority areas:
● Competitive and innovative tourism,
● Modern tourism management systems,
● Skilled workforce for the tourism industry,
● Contribution of tourism to regional and local development, enhancing social and economic
cohesion and improving quality of life.

The “Programme for Tourism Development until 2020” sets out operational objectives
and specific tasks for the sector, identifying those responsible for coordination, delivery
and funding.
One of the main projects developed to implement the programme and commercialise
the Polish tourist brand is the House of Polish Tourism Territorial Brands (Dom Polskich
Turystycznych Marek Terytorialnych). The House will coordinate tourism policies by creating
systematic and comprehensive solutions. It will provide organisational, financial and legal
tools for integration, coordination, commercialisation and internationalisation of Polish
tourism products that are based on the cultural and natural potential of the country. This
creates an opportunity for rural areas to be better integrated within the development
process of the country, to ensure that they provide the necessary public goods, and are
marketed as unique landscapes with cultural and natural assets.
The House of Polish Tourism Territorial Brands is among the strategic projects to be
implemented under the Responsible Development Strategy adopted by the Council of
Ministers in February 2017.
Increased interest in domestic tourism and short break holidays inspired the Polish
Ministry of Sport and Tourism to introduce a new marketing campaign in 2016 called
“Poland See More – Weekend at half price”. Over 400 partners, including mines, museums,
theme parks, zoos, castles, palaces, theatres, hotels, hostels, and spa resorts, developed
special half-price offers for a chosen weekend. Both public and private sectors were
involved in this new form of regional co-operation which marks a new approach to
promoting both acclaimed and lesser-known tourist attractions. The first campaign led to
over 60 000 tourists taking advantage of the special offers. The Polish Tourist Organisation
went on to arrange a second weekend, which saw over 77 500 people choosing to benefit
from the offers. Similar weekends are now scheduled to take place twice a year.

Statistical profile
Table 1. Poland: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Germany 4 800 5 280 5 743 6 012 6 288
Ukraine 1 930 2 110 1 072 1 198 1 265
Russian Federation 670 765 1 003 873 801
United Kingdom .. .. 664 753 797
Belarus 1 620 1 530 811 801 715
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
TOURISM RECEIPTS AND EXPENDITURE, MILLION PLN
Inbound tourism
Outbound tourism
International passenger transport expenditure 1 200 988 2 122 2 204 ..
1 2 http://dx.doi.org/10.1787/888933640956

Table 2. Poland: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 22 445 .. .. .. .. ..
Food and beverage serving industry 7 690 .. .. .. .. ..
4 246 .. .. .. .. ..
industry
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933640975
Table 3. Poland: Internal tourism consumption

Million PLN
2013
Total .. .. ..
1 562 361 2 038
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933640994

II. OECD COUNTRY PROFILES – PORTUGAL
Portugal

2016 was an excellent year for Portugal in terms of tourism performance, with most
tourism indicators reaching double-digit growth. The total number of overnight stays was
53.5 million (up 9.6%), with 71.5% of tourist demand generated by international markets
and 28.5% by domestic markets.
International tourism receipts totalled EUR 12.7 billion in 2016, an increase of 10.7% on
the previous year. The three leading international source markets were, in order of
importance, the United Kingdom, Germany, and Spain; together, they accounted for 48% of
demand.
When considering commercial accommodation, tourist arrivals at hotels and similar
establishments totalled 19.1 million in 2016, of which 40.1% were domestic guests while
59.9% were from abroad. International overnight stays at hotels grew by 11.4% in 2016
while the domestic market increased by 5.2%. Revenue from hotels reached a record of
EUR 2.9 billion in 2016, EUR 421 million more than in 2015.
Tourism plays a very important role in the Portuguese economy; it is the largest export
industry, representing 16.7% of total exports and 48.3% of services exports in 2016.

The Secretary of State for Tourism is located within the Ministry of Economy (the
“Ministry”). Turismo de Portugal I.P. is the National Tourism Authority. It is responsible for
implementing tourism policy at national level and reports to the Secretary of State for
Tourism. Turismo de Portugal oversees promotion, improvement and sustainability of
tourism activities, as well as training and investment.
Turismo de Portugal’s mission is to: enhance and foster tourism infrastructure;
promote human resources training; support investment in the tourism sector; coordinate
domestic and international promotion; and regulate and inspect gambling activities.
Five Regional Tourism Bodies (ERTs) operate within Portugal. These are public law
corporate bodies with a specific territorial scope that act as destination management
organisations with financial and administrative autonomy. They are responsible for
domestic marketing and product development in close co-operation with Turismo de
Portugal, with whom they have a contractual relationship. In addition to these bodies,
there are two Regional Directorates for Tourism in the autonomous regions of Madeira and
the Azores.
There are also seven Regional Tourism Promotion Agencies (ARPTs) which are
non-profit, private associations that bring together the ERTs and private companies. They
engage in international marketing in coordination with Turismo de Portugal. Turismo de

Portugal and its partners ensure that marketing plans and campaigns supported by public
and private funding align with the national strategy.
The total budget of Turismo de Portugal was EUR 244 million in 2016, of which half is
derived from dedicated taxes on gambling, with the remainder from EU Structural Funds
and other public funding. The promotional budget is around EUR 45 million and includes
expenditure on promotion at national and international level, as well as the co-financing
of regional promotion abroad (ARPTs), to which private companies and regional tourism
bodies also contribute.
Portugal: Organisational chart of tourism bodies
Ministry of Economy
Secretary of State for Tourism
Turismo de Portugal, I.P. Tourism Promotion Teams
Regional Agencies for Tourism

Regional Directorates for Regional Tourism Bodies
Promotion
Tourism (ERT)
(ARPT)
Source: OECD, adapted from Turismo de Portugal, 2018.

Like many established tourism destinations, Portugal is experiencing challenges to
remain competitive in the face of change, resulting in the need for continuous innovation.
Sustainability is perhaps the most important challenge for Portugal. More specifically,
how to remain competitive while promoting tourism as a tool for regional development,
preserving the natural and cultural resources and authenticity of destinations, creating
quality jobs, reducing seasonality and regional imbalances, and maintaining a good
balance between residents and tourists.
To address this challenge, the Ministry launched the Tourism Strategy 2027 (TS27),
which establishes a strategic framework for tourism development in Portugal for the next
decade. Development of the strategy involved large numbers of tourism stakeholders from
across the country in an open and participatory process utilising web based platforms and
regional discussion workshops.
TS27 sets out a vision for the Portuguese tourism industry that:
● Affirms tourism as a hub for economic, social and environmental development throughout
the territory, positioning Portugal as one of the most competitive and sustainable
tourism destinations in the world.
This vision represents a broader perspective in terms of key tourism policy priorities,
positioning Portugal as a:
● Sustainable destination; a cohesive territory, where the benefits of tourism are spread
widely; an innovative and competitive destination; a country that values work and
talent; an attractive destination to visit, invest, live and study; an inclusive, open and

connected country; and an international benchmark in terms of the production of goods

and services for the tourism industry.
A ten-year strategy requires a certain degree of flexibility and TS27 will be implemented
through various programs and projects which combine a long-term vision with short-term
actions.
Putting people at the core of tourism policy, Tourism Strategy 2027 established five
strategic pillars:
● Value the territory: using historical-cultural heritage and preserving their authenticity;
promoting urban regeneration; improving product development to better match
consumer needs; protecting natural and rural resources; promoting the importance of
tourism in terms of maritime economy.
● Boost the economy: promoting the competitiveness of tourism businesses, through
simplification and reduction of red tape and bureaucracy; attracting investment;
developing the circular economy; fostering entrepreneurship and innovation.
● Promote knowledge: improving the tourism professions; promoting the development of
human resources; promoting continuous qualification of entrepreneurs as managers;
dissemination of knowledge and tourism data and research; and promoting a smart
destination strategy.
● Generate networks and connectivity: improving air accessibility; developing mobility
within the destination; promoting “tourism for all” from an inclusive point of view;
involving society in the process of tourism planning and development; promoting
networks and co-operation between tourism stakeholders.
● Highlight Portugal: improving Portugal’s positioning as an attractive destination to visit,
invest, live and study; fostering the domestic market; promoting Portugal as a destination
for congresses and events and for students/education; promoting the internationalisation
of tourism businesses.
For the first time, TS27 has also defined specific goals and targets for each of the three
pillars of sustainable development. Economic goals cover overnight stays and tourism
receipts; social goals cover seasonality, skills and qualifications and residents’ satisfaction;
and environmental goals cover energy, water and waste.
Enhancing destination value is a key area of focus in Portugal. For example, the Valorizar
Programme aims to support investment and enhance the quality and value of Portugal as a
tourist destination. The programme was created specifically to address seasonality and
achieve a more balanced distribution of demand throughout the country. With an annual
budget of EUR 30 million, Valorizar provides financial support for the regeneration and
rehabilitation of public spaces for tourism purposes, the development of new tourism
products, and to optimise the value gained from cultural and natural heritage (Box 1.8).

Statistical profile
Table 1. Portugal: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
United Kingdom 1 293 1 393 1 559 1 723 1 926
Spain 1 216 1 258 1 443 1 538 1 670
France 740 834 1 000 1 135 1 332
Germany 809 903 977 1 099 1 218
Netherlands 408 431 427 456 456
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933641013

Table 2. Portugal: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 106 699 p 324 970 320 448 .. .. ..
Accommodation services for visitors 16 394 p 54 128 54 869 59 145 70 548 ..
Food and beverage serving industry 75 432 p 216 327 212 424 216 160 225 335 ..
Passenger transport 11 657 p 44 940 43 497 .. .. ..
Air passenger transport 67 p 10 495 10 092 10 302 10 625 ..
Railways passenger transport 2p .. .. .. .. ..
Road passenger transport 11 426 p 34 085 33 405 .. .. ..
Water passenger transport 162 p 360 .. .. .. ..
3 216 p 9 575 9 658 10 221 11 301 ..
industry
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933641032
Table 3. Portugal: Internal tourism consumption

Million EUR
2008
Total .. .. ..
Accommodation services for visitors 953 2 107 3 060
547 64 611
industry
Other consumption products 478 2 081 2 559
Tourism connected products 122 995 1 117
Non-tourism related consumption products 356 1 086 1 442
.. Not available
1 2 http://dx.doi.org/10.1787/888933641051

II. OECD COUNTRY PROFILES – SLOVAK REPUBLIC
Slovak Republic

In 2016, international travel receipts in the Slovak Republic reached EUR 2 483 million,
up 13.3% on the previous year. This amounts to a contribution of 2.7% of GDP and 28.9% of
exports of services.
Expenditure by Slovak citizens travelling abroad in 2016 totalled EUR 2 billion, 5.5%
more than for 2015. The surplus in the balance of payments in international travel
increased significantly by 67% and remained positive at EUR 460 million in 2016.
Slovakia attracted more visitors in 2016 than in any previous year. The total number of
domestic and foreign tourists increased by 16 % in 2016 to over 5 million, of whom more than
2 million came from abroad. The five leading international markets are the Czech Republic,
Poland, Germany, Hungary and Austria, which together accounted for 58% of international
arrivals in 2016.
In total, 19 834 enterprises provided accommodation and food services in 2016, 1.8%
more than in 2015. Of these, 3 489 provided accommodation services, offering around
63 819 rooms with 160 939 beds. The number of employees in accommodation and catering
establishments was 113 900 in 2016, about 4.6 % of the total employment workforce.

Responsibility for tourism rests with the Ministry of Transport and Construction (“the
Ministry”). The Tourism Section of the Ministry is divided into five departments.
Responsibilities include: preparation of legislative regulations, strategy formulation,
implementation of the Tourism Support Act (development of destination management),
processing statistical data, administration of the register of local and regional tourism
organisations, and marketing and promotion.
The marketing and promotion of Slovakia as a tourist destination had previously been
carried out by the Slovak Tourism Board. However, the latter was wound up at the end of
2016 and its responsibilities were taken over by the Ministry.
At the regional level, tourism responsibilities were devolved in 2001 to self-governing
bodies in the eight regions. Local governments in municipalities and towns also play an
important role in the development of tourism in their areas.
Local and regional tourism organisations (DMOs) created under the Tourism Support
Act are responsible for the development of tourism and the creation and promotion of
competitive tourist products within their defined territories. Currently there are 35 local
and 5 regional tourism organisations operating in Slovakia and co-funded from the state
budget. In 2016, the Ministry provided EUR 4.4 million to these organisations for product
development, tourist infrastructure and marketing.

Tourism associations contribute at local and regional levels, primarily in the fields of
quality improvement, professional training, the application of quality standards and the
communication of the best practices. Representatives of the seven most important
nationwide tourism associations founded the Slovak Tourism Association in 2011 as a
voluntary, non-political organisation of employers in tourism, which has been promoting
greater co-operation in the sector and necessary legislative changes.
The Ministerial budget for tourism was EUR 4.5 million in 2016, of which EUR 115 000
represented the budget of the tourism section and almost EUR 4.4 million was distributed
in the form of subsidies to the local and regional tourism organisations. In addition, the
budget of the Slovak Tourist Board was EUR 4.1 million.
Slovak Republic: Organisational chart of tourism bodies
Ministry of Transport and

Construction
Tourism Section
National level
Dpt. of International Co- Dpt. of Destination Dpt. of Strategy and Dpt. of Relationship with Dpt. of Marketing and
operation in Tourism Management Analyses Foreign Markets Promotion
Tourism
Regional Tourism Industry and
Regional level 8 self-governing
Organisations Tourism
regions
(Regional DMOs) Associations
Local Tourism
Local level Municipalities Organisations
(Local DMOs)
Source: OECD, adapted from the Ministry of Transport and Construction, 2018.

According to its Manifesto for 2016-2020, the Government of the Slovak Republic
intends to increase competitiveness of the tourism sector, while creating new jobs. To
achieve this goal, it has recognised the need to:
● Review the possibility of adopting more flexible forms of employment given the seasonal
nature of tourism,
● Adopt measures to improve coordination between railway and bus transport sectors and
operators of tourism resorts on a year-round and seasonal basis,
● Present the country as an attractive and safe destination and increase the number of
tourists, as well as encourage them to stay longer in Slovakia,
● Encourage destination management through regional tourism organisations and actively
present Slovakia as part of its activities,
● Strengthen the development of tourism products that deliver higher value added and
cost-effectiveness,
● Place more emphasis on support for the development of spa industry.

In 2013, the Government approved the Tourism Development Strategy to 2020. The
Strategy focuses on two key areas: the quality of the tourism offer and the presentation and
promotion of the Slovak Republic as a tourism destination.
The main priorities and challenges identified in the Tourism Development Strategy
have been addressed by various initiatives in the last two years.
● Establishing and launching the Slovak system of quality of tourism services as a
systematic voluntary tool to enhance quality and increase competitiveness. The system
also provides tourism enterprises with advice and assistance. The award of an
internationally comparable quality mark provides an indication of quality to prospective
customers and also serves as a tool for motivating employees to perform better.
● Signing of an agreement between the Ministry and the Statistical Office of the Slovak
Republic to improve statistics relating to inbound tourism, and establish Tourism
Satellite Accounts. The Ministry financially supports the Statistical Office in this work.
● Studying the legislative burden on selected businesses in tourism. The study identified
legislation with the largest financial and administrative impact on businesses. The
findings have provided a roadmap for action to reduce these burdens and to simplify and
improve business conditions, especially for small and medium enterprises.
● Studying the macroeconomic impact of the introduction of recreational vouchers on
promotion and support of domestic tourism. The study offered a systematic tool for
promoting domestic tourism, including a legislative proposal.
● Launching, in December 2016, an official network of three geoparks, which the Ministry
identify as a new and promising sustainable tourism product, providing potential for the
development of domestic tourism. The Ministry has developed recommendations and
guidance for their management and functioning.
● Running in 2016, for the fourth time, a competition for secondary school students called
“Top tourist destination of the region”. One of the aims of the competition is to
strengthen the relationship between students and tourism.
● Carrying out marketing and promotional activities in neighbouring countries and those
with high market potential. This involved participation in 17 tourism fairs in 11 countries
in 2016.
● Signing a co-operation agreement in 2016 with representatives of the V4 countries
(Czech Republic, Hungary, Poland, and Slovakia) during their high-level meeting in Prague.
The protocol on co-operation in the field of tourism aims to increase joint marketing and
promotional activities in overseas markets and thus increase tourist flows from distant
markets to V4 countries.

Statistical profile
Table 1. Slovak Republic: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 10 123 11 678 11 109 .. ..
Overnight visitors (tourists) 4 789 5 525 5 771 .. ..
Same-day visitors (excursionists) 5 334 6 153 5 338 .. ..
Nights in all types of accommodation 20 127 18 879 20 104 .. ..
Inbound tourism
Total international arrivals 15 668 14 842 12 855 .. ..
Top markets
Czech Republic 491 493 437 510 621
Poland 164 168 158 168 188
Germany 136 154 138 159 178
Hungary 60 69 58 70 91
Austria 66 74 67 82 88
Outbound tourism
Total international departures 4 568 4 469 4 738 .. ..
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
International passenger transport receipts .. 37 34 47 ..
Outbound tourism
International passenger transport expenditure .. 118 116 126 ..
1 2 http://dx.doi.org/10.1787/888933641070

Table 2. Slovak Republic: Enterprises and employment in tourism

Number of
establishments1
2012 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 25 235 131 893 136 107 144 129 .. ..
Accommodation services for visitors 2 862 13 987 14 331 15 974 .. ..
Food and beverage serving industry 12 537 64 053 67 866 71 412 .. ..
Passenger transport 3 327 25 023 24 076 25 484 .. ..
Transport equipment rental 702 1 483 2 559 1 412 .. ..
1 302 3 093 3 370 3 442 .. ..
industry
Cultural industry 851 8 973 9 036 9 256 .. ..
Sports and recreation industry 3 654 15 281 14 869 17 149 .. ..
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933641089
Table 3. Slovak Republic: Internal tourism consumption

Million EUR
2014
Total .. .. ..
127 6 134
industry
Country-specific tourism characteristic goods 468 830 1 298
.. Not available
1 2 http://dx.doi.org/10.1787/888933641108

II. OECD COUNTRY PROFILES – SLOVENIA
Slovenia

In 2016, Slovenia recorded more than 4.3 million overnight tourist arrivals, with over
two-thirds of this number being inbound visitors (a 12% increase on 2015). Out of a total of
11.2 million nights in all means of accommodation, 7.3 million were generated by foreign
tourists (up 11% on 2015) and 3.8 million by domestic tourists (up 3% on 2015). Tourism
revenue is growing at a moderate pace, approximately 4% per year.
The largest visitor flows are from Slovenia’s neighbouring countries, including Italy
(up 7.9% on 2015 for overnight stays), Austria (up 7.3% on 2015) and Germany (up 7.1% on
2015). Together they generate 37.7% of total overnight international arrivals. Slovenian’s
undertook 5.4 million outbound trips in 2016, an increase of 10.1% from the previous year.
Tourism GDP increased by 4.4% between 2012 and 2014, to EUR 1.8 billion, representing
4.9% of total GDP. Total direct tourism employment increased from 48 700 jobs (6.1% of total
employment) in 2014, to 51 800 in 2016 (up 6.3%). According to Bank of Slovenia data, export
of travel services increased to EUR 2.3 billion in 2016 (up 3.9% from 2015), accounting for
more than one third of all services exports, and 7% of total exports. The surplus of trade in
travel services also increased in 2016 in year-on-year terms to EUR 1.5 billion.

The Ministry of Economic Development and Technology (MEDT) is the main
governmental body responsible for producing and implementing national tourism policy
as part of overall economic policy. Given the cross-cutting nature of tourism, it is regulated
by a number of national laws requiring permanent cross-sectoral coordination. Legislation
requires the adoption and implementation of a Tourism Strategy for a five-year period.
Strategic planning for Slovenian tourism policy reflects a partnership between the
public and private sectors, and NGOs. The MEDT co-operates and consults primarily with
the Chamber of Tourism and Hospitality, the Chamber of Craft and Small Business and the
Tourism Association of Slovenia, engage in the strategic planning of tourism policy.
The promotion of Slovenia as a tourism destination and the corresponding marketing
activities are the responsibility of the Slovenian Tourist Board (STB), a public agency which
operates six offices in Europe and works with other promotional offices worldwide. The
STB is also responsible for the infrastructure of tourist information, coordinating products,
stakeholder networking and undertaking research and development.
Tourism development at regional level is undertaken by twelve Regional Development
Agencies which are responsible to Regional Councils comprised of Mayors of local
communities. Regional tourism development is governed by national legislation and the
national development objectives of Slovenian tourism, which include some specific

regional development objectives. The MEDT has sought to establish Regional Destination
Organisations (RDOs) with the aim of achieving better integration of local tourism
destinations. RDOs now operate specific development and marketing programmes and
destination brands in each of the twelve statistical regions.
At the local level, each mayor and community council is responsible for tourism
development according to national legislation and national strategic objectives. A locally
collected tourist accommodation tax goes directly to the community budget. It is the main
financial source for local tourism development and is dedicated for this purpose, including
construction of information centres, trails, parks, and sports facilities, along with local
marketing activities. In 2016, the tourist tax receipts amounted to EUR 11.8 million.
The national budget for promotion and development of tourism in 2017 is
EUR 16.1 million, including EUR 11.4 million for marketing and development of tourism
and EUR 2.2 million for the Slovenian Tourism Board. In addition, European funds to the
value of EUR 2.5 million have been allocated for the creation of new tourism projects and
the development of tourism infrastructure.
Slovenia: Organisational chart of tourism bodies

Ministry of Economic
Development and
Technology
Directorate for Tourism

Tourism and Hospitality
Chamber of Slovenia
Slovenian Tourism Board

(National Public Agency for
Associations of Tourism Tourism Promotion and Slovene Enterprise Fund
Industry Marketing )
Association
n oof Hoteliers
Slovenian Natural Spas

Association Regional Destination
Slovenian Convention Organisations
Association of Travel Bureau
Agencies
Local Tourism Local NGO - Tourism
Chamber of Crafts Organisations Societies
Tourism Association of
Slovenia
Source: OECD, adapted by the Ministry of Economic Development and Technology, 2018.

The Government of the Republic of Slovenia adopted in October 2017 the new
Development Strategy for Sustainable Growth of Slovenian Tourism 2017-2021. The primary
objective of which is to increase the competitiveness and visibility of Slovenian tourism. The
key task of the Government is to provide a conducive environment for business and
investment in all sectors, including tourism. This implies an appropriate regulatory
framework and development incentives for investment. The strategy will focus on five key
policy areas:
● Organisation. Reorganising the structure of tourism in Slovenia, into four macro regions
with the greatest potential for development: Alpine Slovenia, Mediterranean Slovenia,
Thermal Pannonian Slovenia, and Central Slovenia with the capital Ljubljana.

● Institutional and legal issues. Reducing administrative barriers to improve the development
of tourism SMEs, including rules on the categorisation of accommodation establishments
and on minimum technical conditions for catering and tourism business activities.
Revising current legislation including a new Promotion of Tourism Development Act,
new Lipica Stud Farm Act and an amended Hospitality Industry Act.
● Investment. Launching a new cycle of investment in both greenfield and brownfield sites
for the development of tourism infrastructure, including private and public investments.
● Small and medium-sized enterprises (SMEs). Promoting the development of new tourism
SMEs, and the development of competitiveness and productivity of existing tourism SMEs.
● Human resource development. Promoting the training and education of tourism personnel
in line with the needs of tourism enterprises, and promoting vocational education and
skills for tourism.
One of the key activities of the Slovenian Tourist Board in 2016 was the promotion of
Slovenia as a green, active and healthy boutique destination. At the core of the promotional
activities was the digital campaign, “Slovenia – Make New Memories”, which the Slovenian
Tourist Board implemented in co-operation with the Slovenian tourism industry in
thirteen international markets.
A number of key policies and actions have been identified for the next five year
programme. These include:
● Promotion of investments in sustainable and innovative tourist offers/services, in line
with brand positioning embodied in the above promotion,
● Introduction of new information technologies in the field of promotion and marketing of
national tourism,
● Transport policy measures that will affect tourism, including support for the development
and establishment of new air, rail, maritime and other transport routes and services to
improve accessibility and investment in the renovation and construction of cableways
and cycle networks,
● Associated actions related to cultural policy, including investment in the renovation of
built cultural heritage of particular significance to tourism, such as castles, manors,
monasteries, etc.,
● New investments in tourist information centres and in infrastructure for congress tourism.
Seeking green, quality and year round tourism investment in Slovenia

In positioning Slovenia as a boutique destination in the heart of Europe, one of the main
challenges will be attracting new investment in tourism infrastructure within the four
principal regions. The most visited facilities are health resorts, seaside resorts and
mountain resorts, and all require investment in tourism infrastructure that meets
Slovenia’s positioning as “Green, active and healthy”. Slovenia needs new investment in
building new accommodation capacity, renovating the existing accommodation portfolio,
and in new tourist attractions and general infrastructure. Within this framework and
brand positioning, the Government will particularly promote investment that is
environmentally sustainable, of high quality, and capable of attracting interest outside the
main tourist seasons. The aim will be to “de-season” Slovenian tourism while improving
the competitiveness, productivity and sustainability of tourism SMEs.

Statistical profile
Table 1. Slovenia: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Italy 414 414 443 484 524
Austria 240 243 266 283 311
Germany 238 243 251 282 307
Croatia 114 119 120 136 153
Outbound tourism
Top destinations
Croatia 1 351 1 449 1 494 1 614 1 660
Italy 152 170 157 217 152
Austria 132 203 162 189 149
Bosnia and Herzegovina 128 143 129 132 117 e
Germany 121 91 117 109 103
Inbound tourism
International passenger transport receipts 130 141 158 176 181
Outbound tourism
Total international expenditure 846 815 864 948 1 015
International travel expenditure 730 708 745 823 854
1 2 http://dx.doi.org/10.1787/888933641127

Table 2. Slovenia: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Hotels and similar establishments 451 8 899 8 404 8 268 8 448 8 559
Passenger transport 1 195 .. c 4 805 .. c 5 012 5 115
Air passenger transport 81 533 503 539 552 553
Railways passenger transport 1 .. c .. c .. c .. c .. c
Water passenger transport 67 .. c .. c .. c .. c .. c
Passenger transport supporting services 382 2 807 2 812 2 889 2 919 2 958
Transport equipment rental 211 .. c 235 .. c 314 312
939 1 847 1 801 1 809 1 898 1 985
industry
Sports and recreation industry 555 3 399 3 264 3 251 3 280 3 388
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933641146
Table 3. Slovenia: Internal tourism consumption

Million EUR
2014
Total .. .. ..
Tourism characteristic products 749 1 094 1 916
66 22 87
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933641165

II. OECD COUNTRY PROFILES – SPAIN
Spain

Tourism is one of the mainstays of the Spanish economy and an outstanding driver of
social development. It accounts for 11.1% of the GDP and 13% of employment. Tourism
continues to contribute substantially to the offsetting of the country’s trade deficit with
tourism receipts amounting to EUR 54.5 billion (up 7.1% from 2015).
With 75.3 million tourist arrivals (up 10.5%) and EUR 54.7 billion in international travel
receipts (up 7.2%) in 2016, Spain ranked as the third largest destination worldwide and the
second largest in terms of receipts. Spanish domestic tourism is also on the rise.
In relation to inbound markets, Chinese and Russian tourists are increasing every year
with improvements in air connectivity and international relations at governmental levels.
In 2017, and for the second consecutive time, the World Economic Forum declared
Spain as the top country for tourism competitiveness.

National responsibility for tourism lies within the newly named Ministry of Energy,
Tourism and Digital Agenda (“the Ministry”) through the State Secretariat for Tourism. This
name change reflects the growing interest in innovation and digital technology in the sector.
The State’s role is in international relations, the promotion and marketing of tourism
abroad, tourism policy, the overall regulation of tourism activity and national economic
planning in which tourism is a key component. The State Secretariat is responsible for
developing, coordinating and implementing tourism policy that falls within the sphere of
the central government’s responsibility, as well as institutional relations at national and
international level. The Secretariat for Tourism coordinates three entities at national level:
Turespaña, Paradores de Turismo S.A. and SEGITTUR (State Society for the Management of
Innovation and Tourism Technologies).
Turespaña is an autonomous body attached to the Ministry, carrying out its activity
abroad through the network of Spanish Tourism Offices supported by Spain’s embassies
and consulates. Its remit includes:
● Tourism promotion in international markets in collaboration with the regional authorities
(Comunidades Autónomas), local authorities and the private sector,
● Drawing up tourism policy in collaboration with other state organisations, public authorities
and the private sector,
● Supporting Spanish tourism firms abroad and also expediting international tourism
co-operation and relations,
● Analysing and disseminating knowledge and intelligence for the tourism economy,

● Drawing up plans and programmes to foster innovation, quality, sustainability and

competitiveness of tourism products and destinations,
● Driving the modernisation of the tourism sector, improving its technological capacity
and enhancing the effectiveness and efficiency of management processes,
● Strategy and investment for the Paradores de Turismo S.A.
Spain: Organisational chart of tourism bodies
Inter-Ministerial
Ministry of Energy, Tourism & Digital Agenda Committee for
Tourism
Coordination boards
Sectoral Tourism
Conference
State Secretariat for Tourism Spanish Tourism

(President of TURESPAÑA) Council
Turespaña’s
Advisory Council
Department for Co-operation and Department for Tourism Development
Tourism Competitiveness and Sustainability
State Company for Innovation and Tourism Spain Institute for Tourism State Network of
Technology Management
TURESPAÑA PARADORES DE TURISMO DE ESPAÑA
(SEGITTUR)
Spanish Tourist Offices Abroad
Department of Services Department of Intelligence and

Department of Strategy and Services Department of Marketing
Administration and Technology Tourism Studies
Source: OECD, adapted from Ministry of Energy, Tourism & Digital Agenda, 2018.
Paradores de Turismo S.A. is a public corporation, whose origin dates back to 1930, that
runs the state-owned hotel network. There are now 95 establishments, employing
3 500 people, most of which are located in historic sites.
SEGITTUR is a state-owned company responsible for promoting research and
development for innovation and new technologies in the Spanish tourism industry, in both
the public and private sectors. It generates and manages the technology, knowledge and
innovation necessary to enhance competitiveness, quality and sustainability in the
environmental, economic and social aspects of tourism.
The 17 Autonomous Regions are responsible for the promotion and regulation of tourism
within their own territories. Local entities (provinces and municipalities) manage their own
tourism interests, mainly in terms of promotion and dissemination of information.
The mechanisms established between the State and the regional administrations are
vital for coordination and to help foster competitiveness in the private sector. The main
coordination instruments between public and private tourism stakeholders are the:
● Sectoral Tourism Conference, a collegiate, advisory and executive coordination body, which
brings together public representatives from central government and the autonomous
regions with tourism responsibilities.

● Spanish Tourism Council, an advisory body which brings together all the territorial
tourism administrations (state, regions and provinces/cities) and the private sector
i.e. chambers of trade, the National Employers’ Association (CEOE), professional associations,
trade unions and a wide spectrum of tourism professionals.
● Inter-Ministerial Committee for Tourism, whose members represent those national
ministries that have responsibility for tourism related matters.
● Advisory Council of Turespaña, established in 2013 to enhance collaboration with the
private sector. It comprises 11 members, 5 of which come from the private sector.
The national administration (Spanish Secretariat for Tourism) had a budget of
EUR 332.9 million for 2016 (up from EUR 323.7 million in 2015). In addition, the
17 Autonomous Regions and local administrations also contribute a significant share of
the overall expenditure on tourism.

The Spanish Secretariat of Tourism is working on a new national strategy. Priorities
include the diversification of products, sustainability and a focus on key market segments
e.g. the “cosmopolitans” with higher spending power and interest in culture, art, special
experiences, gastronomy and shopping.
The Spanish tourism development model is based on sustainability, innovation and
knowledge, digitalisation, specialisation and quality. Sustainability involves better returns
from an enhanced, quality experience and longer stays. Sustainable tourism development also
involves greater innovation in the use of data, digitalisation and “Smart” tourism destinations.
Digitalisation for all subsectors of the tourism chain is key to modernisation of the sector. In
this context, the Spanish Secretariat for Tourism organised, together with UNWTO, the first
International Congress on Smart Destinations in February 2017 in Murcia, Spain.
SEGITTUR is leading the “Smart Destinations” project promoted by the Ministry. This
project aims to improve the position of Spain as a world tourism destination. The
methodology fosters innovation, sustainability and competitiveness at a local level
through the development and deployment of ICT with the aim of creating differentiated
and highly competitive services (Box 2.4).

Statistical profile
Table 1. Spain: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 372 811 398 423 462 761 345 599 | 370 397
Same-day visitors (excursionists) 224 442 253 896 323 146 221 676 | 238 196
Nights in all types of accommodation 647 931 657 780 621 835 476 459 | 508 758
Other collective establishments 45 341 42 911 41 577 27 574 | 32 702
Private accommodation 503 604 517 770 484 690 364 810 | 384 802
Inbound tourism
Total international arrivals 98 128 103 231 107 614 109 834 | 115 561
Top markets
United Kingdom 13 624 14 334 15 007 15 764 | 17 675
France 8 913 9 539 10 616 11 504 | 11 259
Germany 9 319 9 857 10 422 10 260 | 11 209
Nordic Countries 4 168 4 875 5 045 5 009 | 5 129
Italy 3 538 3 225 3 698 3 907 | 3 969
Nights in all types of accommodation 511 424 542 631 575 795 597 319 | 593 417
Other collective establishments 29 307 31 141 34 830 41 004 | 26 547
Private accommodation 230 295 244 132 261 342 266 654 | 286 224
Outbound tourism
Total international departures 14 916 13 434 13 952 15 706 | 16 144
Top destinations
France 2 421 1 868 2 124 1 836 | 2 147
Portugal 1 363 1 335 1 503 1 670 | 1 650
Italy 1 310 1 107 1 207 1 263 | 1 451
United Kingdom 900 995 993 1 188 | 1 299
Germany 657 638 688 891 | 804
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933641241

Table 2. Spain: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Food and beverage serving industry 264 320 1 016 518 1 019 399 1 082 036 1 160 832 1 208 180
Water passenger transport 418 6 118 5 799 9 512 8 912 9 241
Passenger transport supporting services 23 817 .. .. .. .. ..
Transport equipment rental 7 306 161 740 170 216 178 068 182 726 204 261
16 579 54 354 55 724 62 144 74 724 65 108
industry
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933641260
Table 3. Spain: Internal tourism consumption

Million EUR
2013
Total .. .. ..
Accommodation services for visitors .. .. ..
Food and beverage serving services .. .. ..
.. .. ..
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933641279

II. OECD COUNTRY PROFILES – SWEDEN
Sweden

Tourism in Sweden has been growing steadily for the last ten years and is an
important contributor to the economy and labour market. The tourism industry had a
turnover of SEK 296 billion in 2016, an increase of 6.6% compared to 2015 at current prices,
driven mainly by a continuing strong increase in inbound tourism. Inbound tourism
generated a turnover of SEK 120 billion in 2016. The three major cities are the fastest
growing areas when it comes to commercial guest nights.
With a small domestic market, Sweden is dependent on export markets and income
from tourism has continued to grow in relation to Sweden’s total exports. Compared to
2015, the value of tourism exports increased by 12.7% while total exports grew by 1.9%. In
2016, the Swedish tourism industry accounted for 6.2% of the total export value of Swedish
goods and services, compared with 3.9% in 2000. Tourism’s share of the Swedish economy
remained unchanged at 2.7% of GDP in 2016.
The tourism industry in Sweden employed 170 000 persons in 2016, up 6.9% on 2015.
Over the same period, total employment in Sweden increased by 1.7%.
The total number of international commercial guest nights in 2016 was 15.6 million,
up 2.8% on 2015, and an increase of 22% from 2012. The main foreign markets remain
Norway, Germany and Denmark. The biggest non-European market is the US, followed by
China.

The Swedish Agency for Economic and Regional Growth, Tillväxtverket, and
VisitSweden AB are responsible for developing tourism at the national level and marketing
Sweden as a tourist destination internationally. Both organisations report to the Ministry
of Enterprise and Innovation.
Tillväxtverket develops, implements, and supports knowledge initiatives and
activities to promote tourism industry development and entrepreneurship. It is responsible
for official tourism statistics and the production and dissemination of knowledge about the
development of tourism and its effects on the Swedish economy as well as collaborating
with other governmental agencies with responsibilities related to tourism. Tillväxtverket is
based in Stockholm but has a regional structure handling issues related to structural funds.
VisitSweden AB is a company jointly owned by the Government and the Swedish
tourism industry, represented by Svensk Turism AB. It promotes Sweden as a tourist
destination abroad and has offices in several countries. It focuses activities on emerging
markets such as India and China, to promote sustainable nature and ecotourism in rural
areas and to increase efforts to extend the stay of international visitors.

The Ministry for Foreign Affairs, the Ministry of Enterprise and Innovation, the
Ministry of Culture, the Swedish Institute, Business Sweden and VisitSweden are members
of the Council for the Promotion of Sweden Abroad.
The Swedish Association of Local Authorities and Regions (SALAR) is an umbrella
organisation for local and regional authorities. In recent years, SALAR has increased its
engagement in tourism through partnerships with industry organisations. Municipalities,
county councils and regions are increasingly working together to support tourism. SALAR
meets their interest and offers support and services, for example by creating platforms for
networking, conferences etc.. In 2016, members were invited to identify tourism issues
which they considered of most importance for future development of Swedish tourism.
Also in 2016, the Minister of Enterprise and Innovation established a forum bringing
together public and private players in the tourism industry to identify common challenges
in order to make a positive contribution to development of the tourism industry.
Sweden: Organisational chart of tourism bodies
Ministry of Enterprise and Innovation

Policy development
Svensk Turism AB
(tourism industry owned)
VisitSweden AB Tillväxtverket
(50/50 private public ownership) (Swedish Agency for Economics and
Regional Growth)
Promotion of Sweden Tourism programmes and statistics
Source: OECD, adapted from the Ministry of Enterprise and Innovation, 2018.
The budget for tourism statistics and development, integrated in the budget for
Tillväxtverket, totals around SEK 25 million, excluding special assignments such as the
Sustainable Product Programme 2016-19 which has a government budget of SEK 40 million.
The annual budget for VisitSweden is about SEK 140 and 120 million for 2016 and 2017
respectively. This sum is matched by industry for marketing campaigns. Resources for
tourism projects are also allocated through regional and European Union funds.

The Swedish Government has initiated a public consultation on a new coherent
national policy for tourism with a cross-sectoral perspective, proposing new structures and
actions that will contribute to internationally competitive tourism, sustainable growth,
profitable entrepreneurship and employment across the country. Proposals are also sought
on strengthening the cross-border tourism offer.
Major challenges for Swedish tourism include skills, connectivity and transport,
profitability, destination and product development, seasonality, and sustainability.
Transport is crucial and challenging because of Sweden’s large size, geographical
location and small population. These same variables make destination development and
profitability particularly challenging in rural areas. In all Swedish regions, access to high
speed internet is also an important factor for the industry.

Sweden faces large seasonal variations, with distinct and rather short winter and
summer seasons, with great variations within the country. Work is ongoing in practically
all Swedish regions to extend the tourism season. A positive outcome for Sweden is that
the rapidly growing number of international visitors naturally tends to extend the short
summer season, since they take later vacations and have different holiday dates.
In 2012, over 40 regional and local organisations applied to Tillväxtverket to take part in
a four year initiative to strengthen and develop sustainable tourism destinations in Sweden.
The total budget for the project was EUR 6.4 million, of which around EUR 1 million was
allocated to each of five selected regions of Bohuslän, Kiruna, Stockholm Archipelago,
Vimmerby and Åre. Destinations initiated activities to prolong the tourist season, improve
quality in hosting, develop new and more sustainable products and services, enhance
accessibility, and generally improve the destination’s quality and competitiveness (Box 2.2).
The Government asked Tillväxtverket to build on the work of the Sustainable
Destination Development Programme through a Sustainable Product Programme. The new
programme was launched in 2016 and is due to run until 2019, with seven projects across
Sweden focused on cultural and nature tourism.
Tillväxtverket and the Swedish Board of Agriculture are also supporting the work of
Svenska Ekoturismföreningen (Swedish Ecotourism Society) to create a strategy for
outdoor tourism, which will be presented in December 2017.

Statistical profile
Table 1. Sweden: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Total international arrivals 20 011 18 803 19 945 .. ..
Top markets
Germany 1 578 1 303 1 285 .. ..
Finland 1 769 1 523 1 550 .. ..
United Kingdom 636 548 603 .. ..
Norway 1 791 1 785 1 754 .. ..
Denmark 2 586 2 225 1 967 .. ..
Outbound tourism
Overnight visitors (tourists) 15 548 .. .. .. 19 771
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
TOURISM RECEIPTS AND EXPENDITURE, MILLION SEK
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933641298

Table 2. Sweden: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. 153 600 151 600 152 000 p 158 000 p 168 900 p
Tourism industries 26 362 146 200 147 200 147 400 p 153 600 p 164 400 p
Accommodation services for visitors .. 67 300 68 000 70 500 p 75 600 p 81 400 p
Passenger transport .. 20 800 21 200 18 600 p 17 200 p 17 900 p
.. 12 300 12 400 12 100 p 13 200 p 14 100 p
industry
Cultural industry .. 16 200 15 000 16 000 p 16 700 p 18 700 p
.. 29 600 30 600 30 200 p 30 900 p 32 300 p
Other industries .. 7 400 4 400 4 600 p 4 400 p 4 500 p
1 2 http://dx.doi.org/10.1787/888933641317
Table 3. Sweden: Internal tourism consumption

Million SEK
2016
Total .. .. ..
Transport equipment rental services 3 825 p 1 373 p 5 198 p
17 692 p 0p 17 692 p
industry
1 2 http://dx.doi.org/10.1787/888933641336

II. OECD COUNTRY PROFILES – SWITZERLAND
Switzerland

Tourism is an important pillar of the Swiss economy. In 2016, around 165 675 people
(full-time equivalents) worked in the tourism industry, corresponding to 4.1% of total
employment. Tourism contributed 2.6% to Swiss GDP in 2016.
There were a total of 10.4 million inbound overnight visitors in 2016. In the same year,
international travel receipts were CHF 16.0 billion (up 1.4%), representing 3.7% of total exports.
In 2016, a total of 35.5 million nights were registered in hotels and similar
establishments. Nearly 55% of total nights were taken by guests from abroad. Compared to
the previous year, foreign demand fell by 1.5%, while there was a rise in domestic demand
of 1.2% resulting in a slight overall decrease of 0.3%.
The most important source market remains Germany, representing 17.6% of
international arrivals; however, the number of nights taken by German guests has continued
a downward trend in recent years, driven in part by the strong Swiss franc. Moreover, there
has been a sharp decline in the number of nights attributable to guests from China (down
18% in 2016), after several years of sustained growth. Total nights spent in hotels and similar
establishment by those from the Gulf States, the Republic of Korea and the United States
increased in 2016.

The State Secretariat for Economic Affairs (SECO) is responsible for executing Swiss
national tourism policy and for implementing the Federal Act on the Promotion of
Innovation, Co-operation and Knowledge Building in Tourism (Innotour). Numerous
political bodies at a national and regional level influence delivery of the policy, including
various industry organisations.
The Confederation has two associations tasked with implementing various tourism-
related measures:
● Switzerland Tourism (ST) carries out marketing activities relating to Swiss tourism. In
February 2017, a completely revised regulation came into effect, enabling further development
of Switzerland Tourism and strengthening the Confederation’s supervisory role,
● The Swiss Society for Hotel Credit (SGH) supports investments in the accommodation
sector and provides consultancy services at market prices.
In 2016, CHF 60.6 million were available for national tourism policies. Of this, by far the
largest part (CHF 52.7 million) was the contribution to Switzerland Tourism. CHF 7.5 million
was available in 2016 for financing promotion of innovation, co-operation and knowledge
building in tourism. This was higher than in previous years because an increase in funds of

CHF 2.5 million a year for the four years from 2016 to 2019 has been made available to
Innotour as a result of the stimulus programme. Budgets available for information and
documentation activities, and also contributions to international organisations such as
UNWTO, were lower than in recent years, standing at approximately CHF 350 000.
The stimulus programme 2016-2019 also included CHF 200 million for the New
Regional Policy (NRP).
The Swiss Society for Hotel Credit (SGH) is supported by the Confederation with an
existing interest-free loan of around CHF 136 million. For the years 2012 – 2015, SGH was
granted an additional loan amounting to CHF 100 million. However, the Confederation
provided no additional funds for SGH in 2016. Rather, in order to strengthen SGH’s financial
scope, the additional loan to SGH was extended to 2019. By the end of 2016, SGH had used
approximately CHF 43 million of the CHF 100 million loan.
Switzerland: Organisational chart of tourism bodies
Federal Chambers
Federal Council Other departments
Other federal offices and organisations Federal Department of Economic Affairs,

e.g. PRS
linked to the Confederation Education and Research
e.g. Innosuisse State Secretariat for Economic Affairs

SECO
Promotion Activities Directorate

Innotour NRP
Industry associations and other

Cantons
organisations
Switzerland Swiss Society for

Tourism Hotel Credit Municipalities
Source: OECD, adapted from the State Secretariat for Economic Affairs (SECO), 2018.

The 2013 Tourism Report analysed the structural situation of Swiss tourism and the
future tourism strategy of the Federal Government. Tourism policy is implemented on the
basis of four-year programmes and has been guided by this report.
Swiss tourism is facing major challenges including the strong Swiss franc, increasing
pressure on competitiveness, rapidly changing guest requirements and high standards in
the area of digitalisation. In response to these challenges, political support for tourism has
led to a package of tourism policy measures since 2013. These include optimising
promotion of the hotel industry and a stimulus programme for 2016-2019.
In 2017, an interim evaluation of the stimulus programme was carried out. Optimising
promotion of the hotel industry has included modernising implementation regulations,
increasing the financial scope of SGH, and improving coordination between SGH and the

New Regional Policy (NRP). Implementation of the stimulus programme 2016-2019 under
Innotour has been successfully initiated, with more than half of the increased funds
already committed, and the quality of the projects considered impressive. Support for
tourism under the New Regional Policy has started. However, demand for funds from the
stimulus programme was restrained in the first year of implementation.
In 2017, Switzerland’s Federal Council has adopted a new tourism strategy developed
by SECO on behalf of the Federal Department of Economic Affairs, Education and Research
(EAER). An advisory group has been established to guide and support the work of SECO and
to ensure that the new tourism strategy has broad support. It comprises representatives
from political interests, the tourism associations, the Swiss cantons, and academics, as
well as selected actors and entrepreneurs from the tourism sector.
The new tourism strategy is the Federal Council’s contribution to creating an
internationally competitive tourism industry and transforming Switzerland into an attractive
and productive tourism location. Policy is geared towards improving the framework
conditions for providers in the tourism sector, seizing the opportunities of digitalisation,
increasing promotion of entrepreneurship, and strengthening the attractiveness of the
tourism offering and presence in the market. The four existing instruments, Innotour, ST, SGH
and the NRP, are available for implementation of the tourism policy.
These are the main new aspects promoted by the Confederation’s tourism strategy:
● Setting focal points: the new tourism strategy does not list all of the activities of the
Confederation related to tourism. The cross-section nature of the tourism policy is
particularly emphasised.
● Streamlining the use of funds: the existing funds are used in a more streamlined manner
with closer co-operation with the projects, wherever useful and possible. The
reconciliation of funding instruments is optimised to exploit synergies and prevent
repeat actions.
● Digitalisation: the policy promotes the exploitation of the opportunities provided by
digitalisation. It focuses on supporting the digital transformation of business processes
and models as well as market cultivation.
● Focus on implementation: the new tourism strategy is designed with operations in mind,
is flexible and contains specific implementation activities. As a result, it is possible to
quickly adjust the tourism policy to meet changing requirements and conditions in the
market if and when required.
The Confederation’s tourism strategy consists of eight areas of activity with one or two
sub-areas each. Coordination and co-operation is a key area of activity. The new tourism
strategy strengthens the coordination of the Confederation’s tourism policy, with the primary
focus being to develop the Tourismus Forum Schweiz (Tourism Forum Switzerland) into a
platform for dialogue and coordination. The aim is to create temporary, broadly diversified
work groups comprised of representatives of the tourism industry, cantons, municipalities and
Federal Administration. The topic- and project-specific co-operation within these work groups
aims to identify targeted challenges and develop optional actions and approaches to solutions.
As previously mentioned, digitalisation plays a key role. One of the areas of activity
therefore deals with the digital transformation of business processes and models. In 2017,
SECO therefore launched an intensive digitisation campaign in the tourism industry, which
boosts the required digital transformation of business processes and models in the tourism

industry. When implementing the new tourism strategy, the focus is to remain on heavily
promoting digitisation projects and the transfer of knowledge. The activities focus on
further developing existing data and statistics. The extrapolation and utilisation of new
data (e.g. on the behaviour of guests) is also to be reviewed.
Similarly, the digital transformation of the market cultivation process is also a priority
activity. Tourists’ requirements change quickly and the number of marketing and diffusion
channels is rising all the time, thus continuously increasing the challenges faced by
marketing. The main focus is on the further development of the MySwitzerland web
platform by Switzerland Tourism by 2019.
Statistical profile
Table 1. Switzerland: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 70 140 | 76 635 76 000 78 050 76 374
Other collective establishments .. .. .. .. 10 136
Inbound tourism
Overnight visitors (tourists) 8 566 8 967 9 158 9 305 10 402 |
Top markets
Germany 1 871 1 854 1 812 1 616 2 018 |
China 635 770 891 1 210 982 |
United States 687 726 752 803 899 |
United Kingdom 659 698 712 710 800 |
France 669 692 699 655 773 |
Other collective establishments .. .. .. .. 4 728
Outbound tourism
Top destinations
Germany 3 053 | 2 952 2 639 2 939 2 980
Italy 2 091 | 1 951 2 557 2 808 2 730
France 2 042 | 2 247 2 003 2 244 1 913
Austria 949 | 981 1 019 1 091 960
TOURISM RECEIPTS AND EXPENDITURE, MILLION CHF
Inbound tourism
International passenger transport receipts 3 309 3 303 3 284 3 088 2 895 p
Outbound tourism
International passenger transport expenditure 2 629 2 727 2 810 2 372 2 278 p
1 2 http://dx.doi.org/10.1787/888933641355

Table 2. Switzerland: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. 160 042 162 739 163 679 164 878 165 675 p
Tourism industries .. 123 042 125 215 125 918 126 644 126 994 p
Accommodation services for visitors 41 319 34 041 34 927 34 825 35 929 36 205 p
Hotels and similar establishments 4 949 30 845 31 637 31 453 35 929 36 205 p
Food and beverage serving industry .. 38 136 38 538 38 656 38 656 38 623 p
Passenger transport .. 25 504 25 967 26 229 25 926 26 068 p
Air passenger transport .. 6 882 7 093 7 214 6 693 6 830 p
Railways passenger transport .. 12 262 12 423 12 375 12 374 12 364 p
Road passenger transport .. 5 480 5 629 5 676 5 849 5 844 p
Water passenger transport .. 880 821 965 1 010 1 031 p
Passenger transport supporting services .. 3 482 3 521 3 515 3 454 3 438 p
Transport equipment rental .. 438 486 503 527 528 p
.. 13 132 13 102 13 249 13 006 13 020 p
industry
Cultural industry .. 2 750 2 859 2 962 3 003 2 998 p
Sports and recreation industry .. 4 350 4 584 4 738 4 858 4 843 p
.. .. .. .. .. ..
Other country-specific tourism industries .. 1 209 1 232 1 241 1 285 1 271 p
Other industries .. 36 999 37 524 37 761 38 233 38 681 p
1 2 http://dx.doi.org/10.1787/888933641374
Table 3. Switzerland: Internal tourism consumption

Million CHF
2011
Total 26 659 19 644 49 079
Road passenger transport services 751 328 1 079
Passenger transport supporting services 300 234 534
4 339 3 522 8 049
industry
Sports and recreation services 686 573 1 259
Non-consumption products 7 848 3 178 11 026
.. Not available
1 2 http://dx.doi.org/10.1787/888933641393

II. OECD COUNTRY PROFILES – TURKEY
Turkey

Turkey has experienced a significant growth and change in tourism accompanied by
the economic and political restructuring since the turn of the century. In 2016, Turkey
received 31.3 million international tourists, with international receipts (exports)
amounting to USD 22.1 billion. However, despite this positive long-term trend (up 210%
between 2002 and 2014), figures for 2016 represent a decrease from 2014 when the figures
for international arrivals and receipts were 39.8 million and USD 37.4 billion, respectively.

The Ministry of Culture and Tourism is responsible for tourism in Turkey, with a
number of directorates covering activities relating to marketing, investment, training and
the conservation of heritage and assets. Turkey also has 81 Provincial Culture and Tourism
Directorates. The Ministry of Culture and Tourism has 46 Culture and Promotion Offices in
41 different countries, which undertake promotional and marketing activities, and cultural
and art events to promote Turkey as a tourism destination. Other key ministries include
the Ministry of Environment and Urbanisation, the Ministry of Food, Agriculture and
Livestock, the Ministry of Economy, the Ministry of Development, the Ministry of Forestry
and Water Affairs, and the Ministry of Transport, Maritime and Communications. Local
administrations and municipalities also have responsibilities for tourism.
Several professional institutions and private sector associations work closely with the
Ministry of Culture and Tourism on planning the future of tourism in Turkey and
addressing specific issues. These include the Association of Turkish Travel Agencies,
Touristic Hotels and Investors Association, Hoteliers Federation, Turkish Tourism Investors
Association, the Tourist Guides’ Association, and the Prime Minister’s Investment Support
and Development Agency. There are also many local associations throughout Turkey in the
travel and tourism sector.
The overall public budget allocated to tourism sector in 2017 is TRY 493.6 million and
the share of the Ministry of Culture and Tourism is TRY 138.3 million. The Ministry’s budget
includes TRY 20 million to support tourism investments, TRY 42.2 million for winter
tourism infrastructure works, and TRY 40 million for thermal tourism infrastructure
works. The Ministry also has an additional budget of TRY 28.7 million to support access to
drinking water and sewerage systems in tourism intense areas.
● The Ministry of Culture and Tourism of Turkey organises a Tourism Council periodically
with the participation of both central and local government representatives and private
sector representatives,

● The Tourism Strategy of Turkey-2023 puts emphasis on Tourism Councils to ensure

coordination across the tourism industry at national and regional levels. Tourism
Councils should support efforts for further diversification and continuous quality
improvement of tourism products.
Turkey: Organisational chart of tourism bodies

Various Governmental
Institutions
The Board of Inspectors Ministry of Culture and Tourism Various Tourism Industry
Institutions
Press and Public Relations Chambers
Foreign Economic Relations

Consultants
Board
Regional Development and
Investment Agencies
Regional Tourism Boards
Assets and Museum Investment and Establishments Research and Training State Theatres
Personnel Promotion Copyright State Opera and Ballet
Administrative and Financial

Promotion Fund Fine Arts National Library
Affairs
Presidency of Strategy Foreign Relations and

Cinema Manuscripts Institution
Development EU Coordination
Revolving Funds Legal Consultancy Libraries and Publications
Presidency of Canakkale
Gelibolu Historical Site
Source: OECD, adapted from the Ministry of Culture and Tourism, 2018.

The most important challenge to fostering competitive, sustainable and inclusive
tourism development in Turkey is to ensure that an accurate and positive impression of the
country is conveyed to those who have not visited previously.
Other policy issues and challenges facing tourism in Turkey are:
● Addressing seasonality of demand. As a sun and sea destination, tourism flows and
occupancy levels are quite peaked, limiting profitability and the contribution of tourism
to the economy,
● Increasing employment, and tourism as a source for development, in the different
regions of Turkey,
● Improving the sustainability of tourism products, including addressing issues of climate
change and use of resources,
● Responding to global political and economic crises and their effect on tourism,
● Improving quality and skills in tourism.

A number of actions are being pursued to address these challenges, including:

● Diversifying the offer and developing more niche and special interest tourism products,
● Implementing a market-oriented approach which takes account of consumer expectations,
● Focusing on digital promotion and marketing,
● Increasing demand from traditional and emerging growth markets,
● The development of 33 National Standards and 24 Qualifications for vocational training.
The 2015-19 Strategic Plan of the Ministry of Culture and Tourism sets out Turkey’s
tourism objectives and goals regarding marketing and promotion, which include:
● Enhancing Turkey’s competitiveness, market share and brand value in tourism on an
international scale,
● Spreading and developing tourism activities all year round and across all the regions of
the country by diversifying alternative tourism types, particularly health tourism, and
enhancing the quality of tourism sector.
The Tourism Strategy of Turkey-2023 supports diversification by improving the
infrastructure required for specialist tourism sectors and activities, aiming to increase tourism
revenues in order to generate employment and increased incomes for all segments of society
with a balanced use and conservation of strategic natural, cultural, historical and geographical
assets. The 10th Development Plan, for 2014-18, supports activities to enhance health tourism,
winter tourism, golf tourism, cultural tourism, cruise tourism, and convention tourism.
The focus of Turkey’s destination marketing strategy is on the country’s product
diversity and on motivations to travel other than sea-sun-sand tourism, seeking to spread
visits throughout the year and to the regions in a balanced way.
The Ministry also focuses on growing domestic tourism, promoting cultural and touristic
values to Turkish citizens by giving support to appropriate fairs and events, and aiming to
make holidays available to all segments of the community through pricing strategies such as
low prices during the off season. The Ministry also works in co-operation with the Association
of Turkish Travel Agencies (TURSAB), through an “early reservation campaign” offering low
prices for domestic visitors making reservations four to seven months in advance.
One of the 25 Priority Transformation Programs designed to achieve the 2023 targets
and objectives as part of the Tenth Development Plan, is the Health Tourism Improvement
Program. The program, which is a collaboration between the Ministry of Health and the
Ministry of Culture and Tourism, enhances competitiveness by raising the quality of
services in the field of thermal tourism. The target is to establish capacity of 100 000 beds
supplying thermal tourism services to 1.5 million foreign tourists, and a revenue target of
USD 3 billion. The Ministry provides investment and planning support to selected thermal
tourism centres, establishing new models for development including the integration of a
thermal hotel with a care centre and park.
Since 2007, the UN Development Programme and the Ministry of Culture and Tourism
have worked in partnership for local economic development. Together with Anadolu Efes,
a leading entrepreneurial Turkish group, the partnership is implementing the “Future is in
Tourism” project. To date, 13 destinations have been selected for this capacity building
project which is designed to provide local tourism actors and NGOs with the necessary
guidance, tools and resources to contribute to sustainable tourism development through
partnerships with public and private institutions.

The Ministry’s tourism agenda is mainly focused on competitiveness, sustainable

tourism planning, keeping up with recent global tourism trends, destination based
planning and marketing. Travel is constantly changing to new trends such as adventure
trips, solo travel, and responsible tourism. Technology plays an important role in
researching and organising the pre, during and post stages of a journey. In addition, the
Ministry of Culture and Tourism attaches great importance to social and digital media as a
means to promote Turkey, and also to the use of video and film.
Use of video and film media in the promotion of Turkey

Since 2014, a global advertisement and image campaign “Turkey: Home” has been
sharing the life style, historical, cultural and natural values of the country through use of
digital tools and multiple social media channels. 21 promotional films have been
produced, including Turkish Coffee, Grand Bazaar, Two Continents, Baklava, Troy, Poetry, and Evil
Eye Bead as well as the more usual destination specific films. The Global Image Campaign
now has almost 7 million followers.
A themed advertisement film “Turquois” has been shown outdoors on digital screens
and billboards, TV channels, and cinemas in target countries. An introductory film, taken
to various festivals in co-operation with the International Committee of Tourism Film
Festivals (CIFFT) was chosen as the best film of 2016 (www.hometurkey.com).

Statistical profile
Table 1. Turkey: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Same-day visitors (excursionists) 2 017 2 066 1 816 1 640 618
Top markets
Germany 5 029 5 041 5 250 5 581 3 890
Georgia 1 405 1 769 1 755 1 912 2 206
United Kingdom 2 457 2 509 2 600 2 512 1 711
Bulgaria 1 492 1 583 1 694 1 821 1 691
Netherlands 1 274 1 312 1 304 1 232 906
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
.. Not available
1 2 http://dx.doi.org/10.1787/888933641412

Table 2. Turkey: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 400 718 1 173 512 1 230 069 1 286 450 1 329 551 ..
Air passenger transport 133 23 054 25 322 27 844 31 473 ..
Railways passenger transport .. c .. c .. c .. c .. c ..
Water passenger transport 2 857 8 498 9 413 9 744 10 662 ..
Transport equipment rental 6 585 11 785 14 178 20 385 25 478 ..
7 220 39 504 45 897 44 506 49 075 ..
industry
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933641431

II. OECD COUNTRY PROFILES – UNITED KINGDOM
United Kingdom

Tourism is a major part of the United Kingdom economy. The Office for National Statistics
(ONS) Tourism Satellite Account shows that tourism directly contributed an estimated
GBP 62.4 billion in gross value added (GVA) in 2015. Tourism is growing at a faster rate than the
overall UK economy, with an increase of 3.3% between 2014 and 2015 compared to 2.2% overall.
Tourism makes a substantial contribution to employment. In 2015, 1.6 million UK jobs
were directly attributable to tourism. When considering jobs in tourism-related industries,
this figure rises to approximately 3 million, or one in ten of all jobs.
In 2016, the number of international visits grew by 4% to a record 37.6 million from
2015, while the value of spending increased by 2% to GBP 22.5 billion. The top ten markets
accounted for almost two in three visits (64%) and for over half of all spending (55%). The
top five markets by volume were France, the United States, Germany, Ireland, and Spain.
Visitors from the United States spent GBP 1.8 billion more than the next most valuable
market by value, Germany, followed by France, Australia and Ireland.
London receives by far the highest proportion of inbound visits, nights and spending
in the United Kingdom. For example, in 2016, London received 19.1 million overnight visits,
representing total spending of GBP 11.9 billion. In the same year, other parts of United
Kingdom accounted for 16 million overnight visits and associated visitor spend of
GBP 7.8 billion. Of this figure, Scotland welcomed 2.7 million visits and received
GBP 1.9 billion in spending, with the equivalent figures for Wales being 1.1 million visits
and GBP 444 million. Northern Ireland received 2.6 million external visitors, including
those from elsewhere in the United Kingdom.
The overall volume of domestic trips taken in Great Britain in 2015 increased by 9% to
124.4 million, while the number of bednights increased by 8% to 377.1 million. Expenditure
on overnight trips also rose, increasing by 9% to GBP 24.8 billion. Of the total number of
domestic overnight trips, 102.7 million were taken in England, along with 299.6 million
bednights and expenditure of GBP 19.6 billion. In Scotland, there were 12 million trips,
41.3 million bednights and expenditure of GBP 3.3 billion, while for Wales, there were around
10.4 million trips, resulting in 36.2 million bednights and spending of GBP 2.0 billion; figures
that represent a ten year high for Wales.

The Department for Digital, Culture, Media and Sport (DCMS) is the sponsoring
government body for tourism in the United Kingdom. Tourism is a devolved competence in
Scotland, Wales, Northern Ireland and London. DCMS retains responsibility for tourism in
England and overseas promotion of Great Britain as a destination.

VisitBritain and VisitEngland are trading names of the British Tourist Authority (BTA),
the UK Government public body responsible for tourism. Following the 2015 Spending
Review, the Government clarified the distinct activities that BTA would undertake as
VisitBritain and VisitEngland, each with a separate allocation of ring-fenced budget. As
collaboration is critical to the success of VisitBritain and VisitEngland, operations have
been brought together under the BTA Chief Executive.
VisitBritain is responsible for promoting Britain worldwide and developing its visitor
economy. With core funding through DCMS and additional funding through the cross-
government GREAT campaign, VisitBritain works with a range of private and public partners
to grow the value of inbound tourism. VisitBritain has an annual target to increase
international visitor spend in England, Wales, London and Scotland, attributed to its activity,
by 1.5% above the level recorded by the International Passenger Survey (IPS). It also has a
statutory function to advise Government on matters affecting tourism and to provide
research and insight services.
VisitEngland is an advisory body which works to grow the value and quality of tourism
in England.
VisitScotland is a public body responsible to the Scottish Government. Its core purpose is
to maximise the economic benefit of tourism to Scotland. It has responsibility for marketing
Scotland in the United Kingdom and internationally, encouraging the highest quality
standards within the industry, providing visitor information, and implementing an events
strategy to support tourism and raise the country’s international profile. Scotland’s enterprise
agencies provide business support and investment to encourage growth in the tourism sector.
United Kingdom: Organisational chart of tourism bodies
Northern Ireland Scottish Welsh Government UK Government

Assembly Government and Visit Wales (DCMS)
Greater London Local Enterprise

Policy & Finance
Policy & Finance
Policy & Finance
Policy & Finance
Authority (GLA)* Partnerships*
Tourism Northern
(work with)
Visit VisitBritain
Ireland and Tourism London and Partners
Scotland VisitEngland
Ireland
Destination Management Organisations

(DMOs)
* Separate funding relationships apply.
Source: OECD, adapted from the Department for Culture, Media and Sport (DCMS), 2018.
Visit Wales sits within the portfolio of the Welsh Department for Economy and
Infrastructure. It is responsible for formulating tourism policy, and encouraging investment

in, and improving the quality of, the visitor experience in Wales. Visit Wales is also
responsible for marketing Wales in the United Kingdom and internationally.
In Northern Ireland, the Department for the Economy is responsible for tourism strategy
and policy and has oversight of two tourism organisations: Tourism Northern Ireland, in
charge of product development and marketing to visitors from the island of Ireland, and
Tourism Ireland, which markets the island of Ireland in Great Britain and overseas. In
addition, Invest NI administers accommodation grants and provides business support and
advice to tourism businesses.
DCMS funds BTA through a grant-in-aid funding settlement. For the spending period
2016-2020, BTA will receive approximately GBP 26.5 million per annum, of which
GBP 19.5 million is for VisitBritain and GBP 7 million for VisitEngland. In addition, BTA
receives approximately GBP 23 million per annum from the GREAT Campaign to promote
Britain abroad. Tourism funding in Scotland, Wales and Northern Ireland is determined by
the devolved government.
Additional public funding was also made available in 2015-16 for a South West
Tourism Growth Fund of GBP 5 million, and a Northern Tourism Growth Fund of
GBP 10 million (extended to 2016-17) to support inbound tourism to these areas, largely
through marketing.

Published in 2016, the Tourism Action Plan, outlines the UK government’s five tourism
priorities:
● The tourism landscape: strengthening coordination and collaboration,
● Skills: boosting apprenticeships and attracting more people to careers in tourism,
● Common sense regulation: examining the scope for deregulation,
● Transport: making it easier for visitors to explore by rail, bus and coach,
● A GREAT Welcome: driving continuous improvements in the UK visa service.
The overall aim of VisitBritain is to grow international tourism and its benefits across
Britain, with an emphasis on getting visitors to explore beyond London. This feeds through
into its marketing campaigns, including the GREAT campaign, which it undertakes with
private sector businesses.
The GREAT Britain campaign draws on key triggers for travel to Britain, namely
culture, heritage, and countryside, alongside shopping, food, sport, adventure and music.
The campaign aims to:
● Build awareness of Britain’s attractiveness as a tourism destination among those who
have not yet visited Britain,
● Encourage prior visitors to return,
● Provide, in partnership with the private sector, opportunities and incentives to visit
Britain now.
VisitBritain also has a priority to contribute to a stronger and improved business visits
and events sector. It continues to work on improving accessibility for all and providing
tourism business support.

A key focus for VisitEngland for 2016 to 2020 is the Discover England Fund.
VisitEngland has been provided with GBP 40 million over three years to build and grow
outstanding English tourism product to drive international visits across the country.
VisitScotland launched a new marketing campaign, The Spirit of Scotland, in 2016. This
global campaign promotes and celebrates the unique tourism assets of Scotland, the
experience visitors’ enjoy and the tangible spirit they describe when they are in the country.
The Spirit of Scotland campaign uses the power of social media, new digital platforms and
technology, such as virtual reality apps, to attract visitors from around the world.
Working closely with the tourism industry, VisitScotland and the Scottish Government
have devised and developed a series of themed years to keep the spotlight on Scotland as
a leading tourism destination. These include: Year of History, Heritage and Archaeology
2017; Year of Young People 2018; and a celebration of Scotland’s Coast and Water in 2020.
Building on successful delivery of the Commonwealth Games, the 2014 Ryder Cup, and
Homecoming Scotland 2014, VisitScotland continues to secure, develop and support a
portfolio of major events. For example, in 2018 Scotland will host the inaugural European
Championships, which brings together the existing championships of seven of Europe’s
leading sports into one multi-sport event, and The Solheim Cup in 2019.
The Visit Wales 2013-2020 strategy is focused on three main international markets
(Ireland, Germany and United States/Canada). Its emphasis is on improving the tourism
offer through supporting luxury high-end hotels, delivering iconic all weather attractions
and enhancing the visitor experience at heritage attractions, museums and cultural
venues to sustain their long term viability. It also seeks to build potential in business and
events, an area in which Wales has historically underperformed.
In partnership with National Parks, local authorities, the National Trust Wales and
Natural Resources Wales, Visit Wales is working to develop the offer around mountains,
inland waters, countryside, coast, and gardens.
In terms of wider policy issues, Visit Wales is focused on skills for employment based
on demand to fulfil a shortage in the sector and a need to increase the attraction of tourism
as a career prospect.
Northern Ireland will see the production of an updated tourism strategy to 2025,
following one of the key recommendations of the independent review of tourism
structures published in 2014. The review had four key themes: setting the strategic
direction for tourism; building relationships within the sector; closer alignment with Invest
NI; and cultural change within Tourism Northern Ireland to develop a more customer
focused approach. Events have continued to play an important role in tourism promotion.

Statistical profile
Table 1. United Kingdom: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 1 836 019 1 710 910 1 699 240 1 649 426 ..
Same-day visitors (excursionists) 1 710 000 1 588 000 1 585 000 1 525 000 ..
Inbound tourism
Top markets
France 3 787 3 974 4 114 4 171 4 064
United States 2 840 2 778 2 976 3 266 3 455
Germany 2 967 3 048 3 220 3 249 3 341
Ireland 2 453 2 350 2 486 2 632 2 897
Spain 1 716 1 746 1 986 2 197 2 397
Other collective establishments 40 225 56 643 51 858 .. ..
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
TOURISM RECEIPTS AND EXPENDITURE, MILLION GBP
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933641469

Table 2. United Kingdom: Enterprises and employment in tourism

Number of
establishments1
2014 2012 2013 2014 2015 2016
Total .. 1 531 850 1 603 896 1 432 019 .. ..
Tourism industries 205 995 1 171 750 1 183 925 1 012 842 .. ..
Air passenger transport 515 54 250 50 651 41 186 .. ..
Railways passenger transport 62 25 550 24 112 27 976 .. ..
Road passenger transport 9 665 89 570 69 213 54 450 .. ..
Water passenger transport 726 1 850 2 200 2 290 .. ..
Transport equipment rental 3 512 1 500 1 526 916 .. ..
7 257 106 000 95 968 86 713 .. ..
industry
Cultural industry 29 742 72 600 78 617 45 948 .. ..
.. .. .. .. .. ..
Other country-specific tourism industries 3 633 400 748 270 .. ..
Other industries .. 360 100 419 971 419 177 .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933641488
Table 3. United Kingdom: Internal tourism consumption

Million GBP
2014
Total .. .. ..
Water passenger transport services 697 430 1 127
2 822 110 2 932
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933641507

II. OECD COUNTRY PROFILES – UNITED STATES
United States

Travel and tourism is a major contributor to the economy of the United States,
accounting for 2.7% of GDP. Travel and tourism-related exports accounted for 33% of all
United States services exports and 11% of total exports in 2016.
According to the U.S. Travel and Tourism Satellite Accounts, the industry produced
USD 1.5 trillion in total economic output in 2016 (USD 894 billion of direct tourism output
plus USD 646 billion of indirect tourism output by ancillary industries). The travel and
tourism industry is one of the United States’ largest employers, supporting more than
7.6 million jobs in 2016, of which 1.2 million were supported by travel and tourism-related
exports.
The United States welcomed a record 75.9 million international visitors in 2016. The
largest source markets are Canada and Mexico, followed by the United Kingdom, Japan and
China. International visitors collectively spent USD 245 billion on travel to, and tourism-
related activities within, the United States in 2016. In order of contribution (spending in
USD), the top international market for travel and tourism-related exports was China,
followed by the other four countries identified above.

Travel and tourism in the United States is highly decentralised. Public authorities
manage travel and tourism at the national, regional, state, and local levels. These include the
federal government, state governments, and destination marketing organisations (DMOs).
The National Travel and Tourism Office (NTTO), within the International Trade
Administration (ITA) of the United States’ Department of Commerce, serves as the central
point of contact within the federal government and represents the United States in inter-
governmental fora, including the OECD and the Asia-Pacific Economic Co-operation. NTTO
is the source of official tourism statistics, and works to enhance the competitive position
of the United States with respect to travel and tourism. Additionally, NTTO works closely
with ITA’s U.S. Commercial Service at U.S. missions in more than 70 overseas markets to
promote travel and tourism exports.
The Corporation for Travel Promotion (CTP), formed in 2010 and operating as Brand
USA, is a non-profit corporation that promotes travel to the United States and works with
the United States government to communicate the entry process for international visitors.
Brand USA’s Board of Directors is appointed by the Secretary of Commerce, and the NTTO
is the official government liaison to Brand USA.
The federal government does not regulate travel and tourism as a distinct industry,
although some sectors, such as transport, are regulated at the federal level. The Department

of Commerce serves as a facilitator between the private sector and other federal agencies for
policy coordination with respect to travel and tourism issues. States and local governments
may regulate the conduct of travel and tourism business within their jurisdictions.
The process of policy deliberation at the Department of Commerce includes:
● The U.S. Travel and Tourism Advisory Board (TTAB) – consisting of up to 32 private-sector
representatives from companies and organisations in the travel and tourism industry,
who are appointed to provide policy input to the Secretary of Commerce.
● The Tourism Policy Council (TPC) – an inter-agency council established by law for the
purpose of ensuring that the nation’s tourism interests are considered in federal
decision-making. Its major function is to coordinate national policies and programmes
of federal agencies that have a significant effect on international travel and tourism,
recreation, and national heritage resources. The TPC reviews and considers TTAB
recommendations and provides additional insight from the public sector perspective on
issues affecting travel and tourism nationally.
United States: Organisational chart of tourism bodies
Department of
Commerce
International Trade
Administration
National Travel and

U.S. Commercial Service Brand USA
Tourism Office
Travel and Tourism Tourism Policy Council

Advisory Board (TTAB) (TPC)
Research Policy Industry Outreach
Source: OECD, adapted from the United States Department of Commerce, 2018.
NTTO is allocated resources from a congressional appropriation to the Department of

Commerce. In addition, NTTO sells research reports and data to generate additional
operating revenues, while inter-agency agreements also generate funds. NTTO’s operational
budget for FY2016 was approximately USD 5.6 million from all sources.
TTAB participation is funded by the private sector members and TPC participation is
funded by the relevant agencies.
Brand USA is supported by a portion of the fees charged for the Electronic System for
Travel Authorisation (ESTA), paid by international travellers coming to the United States
from countries participating in the visa waiver programme. Up to USD 100 million is made
available each year to Brand USA to match qualified private sector contributions.


The United States continues to implement its 2012 National Travel and Tourism
Strategy. The Strategy set the goal to increase American jobs by attracting 100 million
international visitors annually, who are estimated to spend USD 250 billion, by the end of
2021. The Strategy also encourages Americans to travel within the United States and its
territories and see all that the country has to offer. At the half-way point of its
implementation, the United States has nearly reached the spending goal and is working
with the private sector to evaluate a new target. To meet these goals, and to ensure that the
United States is creating conditions for growth, the United States is focused on promotion,
travel facilitation, the visitor experience, a whole-of-government approach, and research.
Several actions have been taken towards increasing the United States’ share of long-
haul travel, including destination marketing efforts; improvements in visa processes; the
development of public-private partnerships aimed at improving the arrivals experience;
and the expanded use of trusted traveller programs (which have continued to break records
in terms of levels of enrolment), kiosks, and other technological enhancements in arrival
processes at ports of entry.
To meet growing customer demand, the Department of Homeland Security is engaging
with public and private sector partners on an array of initiatives, such as enhancing the
queuing area of primary entry, improved signage that is easily understood by international
travellers, wait-time monitoring and reporting.
Enhancing safety and security of travel to the United States

To ensure the safety and security of travellers and the nation, the United States is
requiring new security measures to be applied to all commercial inbound flights. These
measures will be phased in over time and include enhanced screening of electronic
devices, more thorough passenger vetting, and new measures designed to mitigate the
potential threat of insider attacks.
The United States is also aiming to encourage airlines and airports to adopt more
sophisticated screening approaches, including better use of explosive detection canines
and advanced checkpoint screening technology. In the meantime, the United States will
work closely with international partners to put in place wider counter-terrorism
improvements, including better information sharing, expanded exchanges of terrorist
watch lists, and more advanced security checks of travellers around the world.
While the United States is specifically focused on improving the security of U.S.-bound
flights, the hope is that other nations will follow suit to raise security standards so that all
countries are protected from current and emerging threats.
The United States is piloting a biometric exit system utilising existing airport and
airline infrastructure; leveraging existing stakeholder systems and processes; and using
existing traveller data and IT infrastructure. The system aims to provide a more seamless
travel experience, enhance security for inbound and outbound travel, improve business
processes, and enable stronger collaboration between government and the private sector.
Other policy priorities for the United States include a focus on emerging markets, such
as China and India; natural disaster recovery measures to assist affected businesses; and
measuring results, such as the visitor arrival experience.

Statistical profile
Table 1. United States: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Canada 22 697 23 407 23 014 20 699 19 289
Mexico 14 199 14 547 17 070 18 374 18 991
United Kingdom 3 763 3 835 4 149 4 901 4 574
Japan 3 698 3 730 3 620 3 758 3 577
China 1 474 1 807 2 190 2 591 2 972
Outbound tourism
Top destinations
Mexico 20 308 20 851 25 882 28 733 31 194
Canada 11 887 11 478 11 523 12 669 13 895
United Kingdom 2 537 2 640 2 832 2 885 ..
Dominican Republic 2 252 1 973 2 709 2 787 ..
France 2 024 2 002 2 124 2 361 ..
Inbound tourism
Outbound tourism
.. Not available
1 2 http://dx.doi.org/10.1787/888933641526

Table 2. United States: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total 819 706 5 175 690 5 063 640 5 174 210 5 252 750 5 346 040
Accommodation services for visitors 59 349 1 327 880 1 337 590 1 373 750 1 395 640 1 406 330
Food and beverage serving industry 613 041 1 659 700 1 481 310 1 529 550 1 548 220 1 580 310
Passenger transport .. 1 030 380 1 044 610 1 063 000 1 099 460 1 140 040
Air passenger transport 5 802 439 680 433 840 439 680 453 570 468 280
Transport equipment rental 9 647 .. .. .. .. ..
21 912 .. .. .. .. ..
industry
Cultural industry 6 356 .. .. .. .. ..
.. 429 480 460 140 471 940 482 920 488 140
Other industries 25 149 200 960 209 540 213 430 216 360 217 060
.. Not available
1 2 http://dx.doi.org/10.1787/888933641545
Table 3. United States: Internal tourism consumption

Million USD
2015
Total .. .. ..
Passenger transport supporting services 15 519 832 16 351
47 165 1 295 48 460
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933641564

PART III
Partner country profiles

II. PARTNER COUNTRY PROFILES – BRAZIL
Brazil

Tourism in Brazil accounts directly for 3.7% of GDP, rising to 9.6% if indirect effects are
also included. The sector supported in excess of 2 million jobs in 2016 (down 1.7% from
2015), accounting for 2.4% of total employment.
In 2016, international tourist arrivals reached a record of 6.6 million, representing an
increase of 4.3% on the previous year, and generating total revenue of USD 6 billion (up 3.7%).
Argentina, was by far the largest source market with 2.3 million visitors (34.9% of the total),
followed by the United States (8.7%), Paraguay (4.8%), Chile (4.7%) and Uruguay (4.3%). The
five primary source markets demonstrated varying levels growth from 2015, apart from the
United States, which experienced a very slight contraction of approximately 1%.
With over 206 million trips in 2015, the domestic market has high potential for growth.
90% of Brazilians will choose domestic destinations for their next vacation, including
carnival and summer breaks. The main destinations are the Northeast, followed by the
Southeast and South regions.

Since 2003 the Ministry of Tourism (MTur) has overseen a process of decentralisation
towards a shared management structure for tourism built upon a network of engagement
and activity with public, private and third sector actors, throughout the country.
This model consists of a national strategic core including:
● The Ministry of Tourism,
● The National Council of Tourism (CNT), which is responsible for strategic direction and
bringing together the various actors,
● The National Forum of State Secretaries and Directors of Tourism (FORNATUR), and
● A decentralised management network composed of Regional Governance Bodies.
The State Tourism Boards and Councils, created in the 27 Federation Units, are legally
independent management bodies, promoting efficient communication in the different
tourist regions of the country. They also serve as important instruments to support
activities that benefit tourism, providing continuity over time.
Reflecting the high priority given to tourism by the Federal Government, the 2017
general budget for tourism in Brazil was BRL 672 million (down 9.7% on 2016). In additional
to the Federal Government, funding is received from other sources, including national and
international aircraft boarding fees.

Brazil: Organisational chart of tourism bodies
National Marketing
National Secretariat of Toursim Qualification

and Promotion
Formalisation and Qualification
National Tourism Council
Management Board
Ministry of Tourism Executive Secretariat Directory of Economic Studies
Planning and Management Office
EMBRATUR – Brazilian Tourism Board

Mapping and Territorial Manangement of
Tourism
National Secretariat for
Structuring Tourism
Tourism Infrastructure

The National Tourism Plan 2013-16 continues to be a reference point for public sector
tourism policy. Its focus is on the development of tourism that is economically sustainable,
environmentally balanced and socially inclusive.
Despite efforts to promote sustainable growth in the tourism sector, Brazil is still far
from achieving its goals of social equity and respect for the environment. One of the biggest
challenges is to raise awareness in the private sector about the importance of sustainable
development as a way to protect the environment, improve the economy and provide
accessibility for all.
In April 2017 the Ministry of Tourism launched “Brazil + Tourism”, a package of
measures to strengthen the industry in Brazil. This initiative aims to:
● Bring technical solutions to historical bottlenecks,
● Increase the number of domestic and foreign tourists,
● Improve domestic destinations,
● Provide regional development, and
● Generate employment and income.
The primary strategic initiatives to boost tourism in Brazil are:
● Issuing Electronic Visas. The MTur has proposed to the Ministry of Foreign Relations that
the use of electronic visas be applied to certain strategic countries, thereby making the
process, which is accessible online, much easier, quicker and less bureaucratic.

● Expanding air connectivity. Amendment of the Brazilian Aeronautical Code will raise the
limit on foreign investment in the capital of Brazilian airlines to 100%. The objective is to
increase competitiveness and the number of flights and tourists travelling within the
country, in addition to extending the regional air network to facilitate the spread of
national and international visitors.
● Modernising the Brazilian Tourist Promotion Agency, EMBRATUR. Changes will enable
the Agency to: act more competitively in the international tourism marketplace; receive
private resources for the development of projects of mutual interest, with reduced
bureaucracy; modernise its management; and maintain a structure of offices and
personnel abroad.
● Modernising the General Tourism Law (LGT). 118 proposals for changes in General
Tourism Law have been submitted to the National Congress. The goal is to adapt the
Brazilian tourism legislation to the current dynamics of tourist activity, reducing
bureaucracy and improving integration with the private sector.
● Achieving better use of certain areas of the Union. The Ministry of Tourism will strengthen
tourism management, regulation and concessions in locations with tourism development
potential.
● Updating the Brazilian Tourism Map. A process, undertaken every two years, to improve
the organisation in the municipalities and regions and their orientation to tourism,
linked to the receipt of federal resources. In the last update in 2016, the number of
municipalities was rationalised to 2 175 in 291 tourist regions (down from 3 345 in 2013).
● Strengthening State Tourism Agencies. This involves the transfer of BRL 5.4 million for
State Tourism bodies, allocated to reflect the restructure of tourist regions of the
Brazilian Tourism Map. The measure will allocate resources to integrated development
plans for sustainable tourism and marketing, amongst other activities.
● Intensifying surveillance of tourist transport on Brazil’s highways, through technical co-
operation with the National Agency of Terrestrial Transportation (ANTT).
● Strengthening professional qualifications. Programs at different levels have been
established to address the need to improve the availability of skilled labour and quality of
service. For example, as part of a package of measures called “Brazil + Tourism” to boost
the development of tourism in the country, an important element was a programme to
provide practical skills training for young people and adults to improve the quality of
service for tourists (Box 1.21).

Statistical profile
Table 1. Brazil: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Argentina 1 672 1 711 1 744 2 080 2 295
United States 586 593 657 576 570
Paraguay 246 269 294 302 317
Chile 251 268 337 306 312
Uruguay 254 263 224 267 284
Outbound tourism
Top destinations
United States 1 791 2 060 2 264 2 219 1 394
Argentina 1 217 973 1 082 963 763
Portugal 479 504 562 533 510
Spain 410 392 441 534 501
France 501 521 481 506 499
Inbound tourism
International travel receipts 6 378 6 474 6 843 5 844 6 024 e
Outbound tourism
International travel expenditure 22 039 25 028 25 567 17 357 14 497 e
1 2 http://dx.doi.org/10.1787/888933641583

Table 2. Brazil: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 254 566 p 2 059 715 1 938 890 2 046 469 2 079 450 2 043 162 p
Accommodation services for visitors 29 616 p 301 927 320 265 341 700 346 472 334 357 p
Food and beverage serving industry 183 428 p 1 118 993 1 009 078 1 083 971 1 124 364 1 124 837 p
Passenger transport 14 539 p 468 856 442 174 447 369 433 893 413 623 p
Air passenger transport 672 p 61 780 59 637 61 702 58 824 52 177 p
Road passenger transport 13 308 p 400 621 375 510 378 875 368 876 355 358 p
Water passenger transport 559 p 6 455 7 027 6 792 6 193 6 088 p
Transport equipment rental 5 448 p 32 973 34 791 40 734 44 515 42 851 p
12 077 p 102 008 98 012 96 871 92 745 89 195 p
industry
Cultural industry 9 458 p 34 958 34 570 35 824 37 461 38 299 p
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933641602

II. PARTNER COUNTRY PROFILES – BULGARIA
Bulgaria

Tourism in Bulgaria is a priority sector as it contributes to sustainable development,
protection of nature, prosperity of local communities, and economic growth.
In 2016 tourism directly contributed 3.4% of GDP and generated 3.2% of total
employment. The total impact of tourism (including indirect and induced) was estimated
to represent 12.8% of GDP and 11.9% of employment (WTTC).
In 2016, Bulgaria received 8.3 million inbound overnight visitors, which represents an
annual increase of 16.2% over 2015. There was a growth of 19.9% in the number of holiday
visits 5.1 million. Business visits totalled 1.4 million, an increase of 19.4% compared to 2015.
International arrivals spent a total of 16.2 million nights in all means of accommodation, up
nearly 21% on the previous year. European Union countries continue to be the most
important source markets for inbound tourism, accounting for nearly two-thirds of total
nights (61%). The top three inbound markets are Romania (1.1 million), Greece (1.1 million)
and Germany (827 000), which combined, account for over a third of total nights (36%).

The Council of Ministers is responsible for formulating national tourism policy in
Bulgaria. The Ministry of Tourism (the “Ministry”) implements this policy and coordinates
the relevant activities of other ministries and institutions. The Ministry is also responsible
for regulation, product development, marketing, research and information, management
of external funding for projects and assistance to regional management organisations.
The National Tourism Council is a government consultative body under the authority
of the Ministry with representatives from tourism-related ministries and national, regional
and local tourism associations, transport operators and consumer bodies.
At subnational level, regional authorities develop and implement tourism strategies and
programs in line with the national tourism and regional development strategies. The
Tourism Act also makes provision for local authorities to adopt tourism development
programmes. The involvement of local communities is ensured by extending the scope of
the municipal programs to tourism development. The local mayor is responsible for
establishing an Advisory Council on Tourism and a Municipal Expert Commission to
categorise tourism facilities and supporting initiatives in line with national tourism policies.
Under the new legislative framework, nine intermediary organisations will be
introduced as Destination Management Organisations. These are legal bodies, the
members of which include tourism associations, regional and municipal administrations,
institutes, museums, scientific bodies and tourism schools. They are responsible for

regional tourism product development and the marketing of the nine established tourist
regions in Bulgaria.
The Ministry works closely with the private sector and different stakeholders. At
national, regional and local level the tourism associations listed in the National Tourism
Register participate in relevant tourism organisations and are represented in the National
Tourism Council, thus taking an active role in tourism planning and management. They take
part in the development of strategies and programmes at national, regional and municipal
level, support the process of improving professional skills in the sector, carry out consulting
and marketing activities, support the improvement of tourism products and services, and
work for the protection of consumer interests.
In 2016 the budget of the Ministry of Tourism was BGN 17 million, of which
BGN 10.8 million was allocated for marketing purposes. The Ministry of Tourism
administers revenues from the national government and the European Union. Financial
support is also provided through the Operational programmes 2014-2020.
Bulgaria: Organisational chart of tourism bodies
Council of Ministers
Other ministries
Ministry of Tourism
National Tourism Council
Tourist
Associations Scientific organisations,
Regional Authorities Customer associations, others
Regional Governor
Tourism Regions
Management Organisations
Local authorities
· Mayor Tourism Information
Advisory Council on Tourism
· Municipal Council Centres

Bulgaria supports a consistent tourism policy based on partnerships between
government and local authorities, NGOs, business and civil society.
The most important challenges for the Bulgarian tourism sector, addressed in the new
long-term strategy for sustainable development, are:
● Overcoming seasonal and spatial concentration,
● Adapting the national tourism product to climate change,
● Protecting the environment; supporting the implementation of energy efficiency measures,
waste management and protection of biodiversity and the landscape,
● Developing carrying capacity indicators for vulnerable natural areas and popular tourist
sites,
● Regulating the construction in seaside and mountain resorts.

The strategic goal is to strengthen the competitiveness and efficiency of the tourism
sector in Bulgaria through the optimal use of natural and human resources, in line with
market requirements and consumer expectations for sustainable tourism development. It
involves:
● Developing integrated and distinctive tourism products for different categories of
tourists based on the natural priorities of Bulgaria,
● Promoting quality services and protecting the rights and safety of consumers,
● Ensuring effective coordination between institutions and integrating tourism into
related sectoral policies,
● Making Bulgaria a recognised leader in the area of tourism development in the EU and
building a positive attitude towards the country,
● Raising the level of awareness for Bulgaria as a summer and winter tourism destination,
capitalising upon the ancient culture, the rich historical and architectural heritage, the
mineral resources, the beautiful and preserved nature, and the security and tranquillity
it offers visitors,
● Effective national marketing aimed at positioning and promoting Bulgaria as a year-
round tourist destination with sectoral organisations and tour operators working on key
markets through targeted messages.
The Ministry is seeking to stimulate the tourism sector by drafting new provisions for
tourist activities, by facilitating administrative procedures, by assisting the activities of
regional, local and branch tourism organisations. The Ministry also assists SMEs by
providing institutional support and funding for Destination Management Organisations
outlined in the Tourism Act, including:
● Activities aimed at capacity building for enterprises to access national and international
markets,
● The establishment of a unified system for tourist information at national level as a
platform for networking tourism business, tourism organisations and institutions,
● Support for the introduction of ICT,
● Conducting market studies, analyses and forecasts,
● Developing product, marketing and investment concepts, strategies, plans, etc.,
● Organising business forums both in Bulgaria and abroad and supporting participation in
events and exhibitions at the regional, national and international.

Integrating tourism information and data in Bulgaria

The Ministry of Tourism is currently developing an Integrated Tourist Information
System in the form of an electronic database containing information on:
● Registered tour operators and travel agents,
● Categorised places of accommodation, catering and entertainment facilities,
● Destination Management Organisations and Tourist Associations,
● Tourist information centres,
● Tour guides, mountain guides and ski instructors,
● Certified balneotherapy, spa, wellness and thalassotherapy centres,
● Tourist attractions and festivals,
● Statistical data compatible with Eurostat and the World Tourism Organization.
The Ministry aims to have an online platform which will gather large volumes of data
from all levels and different institutions, to allow the tracking of daily and weekly arrivals,
along with a range of indicators and supplementary data at regional level. It is a single
gateway for communication between the relevant authorities of central and local
authorities, a “one stop shop” for daily and periodic information submitted by the
participants in the National Tourism Register. This platform will also ensure innovative
and secure data transfer between institutions which will lead to better monitoring and
benchmarking, and also to better decision-making process at all levels.

Statistical profile
Table 1. Bulgaria: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Romania 932 941 947 987 1 097
Greece 929 935 1 032 973 1 067
Germany 650 683 714 623 827
Turkey 294 382 438 519 565
Outbound tourism
Top destinations
Turkey 1 091 1 061 1 107 1 242 1 219
Greece 790 829 867 1 043 1 201
Romania 318 308 322 333 423
Serbia 302 300 316 315 405
Former Yugoslav Republic of Macedonia 362 316 327 316 360
Inbound tourism
Outbound tourism
International travel expenditure 927 1 115 1 199 1 116 1 361 e
1 2 http://dx.doi.org/10.1787/888933641640

Table 2. Bulgaria: Enterprises and employment in tourism

Number of
establishments1
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Hotels and similar establishments 2 158 39 230 41 331 .. .. ..
Food and beverage serving industry .. 101 530 101 266 .. .. ..
.. .. .. .. .. ..
industry
.. .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933641659
Table 3. Bulgaria: Internal tourism consumption

Million BGN
2014
Total .. .. ..
Accommodation services for visitors 287 p 1 448 p 1 735 p
Food and beverage serving services 318 p 1 997 p 2 315 p
Passenger transport services 312 p 643 p 956 p
24 p .. p 24 p
industry
Cultural services 97 p 545 p 642 p
Sports and recreation services 12 p 73 p 85 p
Other consumption products 126 p 1 920 p 2 046 p
1 2 http://dx.doi.org/10.1787/888933641678

II. PARTNER COUNTRY PROFILES – COLOMBIA
Colombia

During 2016, Colombia received 5.1 million foreign tourists, meeting the goal set by the
national government. The main countries of origin of inbound visitors are the United States,
Venezuela and Ecuador, with the main destinations visited (2015-2017) being Bogota,
Bolivar, and Antioquia.
Tourism has become the primary services export in Colombia and the second overall,
behind oil, generating direct and indirect jobs and income in foreign currency, and
promoting regional development and economic growth. Tourism represents 2.8% of GDP in
Colombia and created around 375 000 new jobs between 2010 and 2016. There are now
1.8 million people employed in the sector. In 2016, tourism grew by 0.3% compared to 2015
(Presidencia de la República, 2017). Between 2010 and 2016, foreign investment in hotels and
restaurants was around USD 9 billion.

The Ministry of Trade, Industry and Tourism supports the management of tourism in
the regions and helps to improve the competitiveness and sustainability of tourism in
Colombia. The mission of the Vice-Ministry of Tourism is to work with regions and
providers to position Colombia as a sustainable tourism destination known for its diverse
and multicultural offer. Its functions are to:
● Agree, implement and evaluate tourism policy and related plans and programmes, in
conjunction with relevant public and private sector entities, and thereby improve the
competitiveness and sustainability of tourism products and destinations and promote
domestic and inbound tourism,
● Adjudicate on complaints related to tourism services and other offences covered by
tourism legislation,
● Coordinate the National Register of Tourism and certification related to the provision of
tourism services,
● Create and ensure the implementation of the Tourism Sector Plan.
The Vice-Ministry works with other entities related to tourism. In 2013, Decree 1837
established the Superior Tourism Council as the coordinating body between state
authorities, under the direction of the Ministry. This Council brings together relevant
ministries and seeks to administer tourism programmes and projects that implement the
tourism policy formulated by the Ministry.
Under the General Tourism Law (1996), regional and local authorities are responsible
for developing tourism activities in their territories, within the context of national tourism

policy. The Ministry coordinates tourism planning with the regional and local authorities
through Competitiveness Agreements, which identify the priorities for joint work over a
three-year period.
The Vice Ministry of Tourism through the National Tourism Fund (FONTUR) is
responsible for the collection, management and execution of resources for tourism
infrastructure, promotion and tourism competitiveness.
Funding for tourism development comes from a number of sources, including:
● Fiscal resources assigned by the Government from the General Budget to the Ministry of
Trade, Industry and Tourism for tourism infrastructure, promotion and competitiveness,
● Obligatory contributions from tourism service providers for the promotion and
competitiveness of national tourism destinations,
● Tourism taxes from international visitors entering Colombia by air. The tax rate is
currently USD 15 per visitor, with proceeds used to increase competitiveness and for
promotion,
● Resources from the management of tourism properties by the State,
● Income from the exploitation of tourism-related brands owned by the Ministry,
● Penalties imposed on tourism service providers for legal infractions.
Colombia: Organisational chart of tourism bodies
Ministry of Trade, Industry and Tourism
Vice-Ministry of Tourism National Tourism Fund

ProColombia (FONTUR)
Tourism Vice-presidency Property

Quality and Sustainable Sectoral Analysis and Management
Development Promotion
Directorate Directorate
Management
Marketing and Promotion
Leisure Tourism Corporate Tourism
Management Management
Management of
Competitiveness and
support to regions
Infrastructure
Management
Source: OECD, adapted from Ministry of Trade, Industry and Tourism, 2018.

The National Government has been working on many approaches to strengthen
tourism competitiveness. The priority issues for tourism in Colombia are quality,
infrastructure, human resources, education, promotion, connectivity, tourism culture,
entrepreneurship and coordination with other national entities and local authorities.
The National Development Plan 2014-18 recognises tourism as a priority sector for the
national economy and contains tourism actions to support economic goals. The National
Tourism Plan 2014-18, Tourism for Peace Building, reflects the aspirations incorporated in the
National Development Plan and sets the goal of positioning Colombia as a sustainable

tourist destination, renowned for its diverse and multicultural offer displayed in highly
competitive products and services that empower the regions in the pursuit of peace. The
vision is that by 2018, the tourism sector will generate 300 000 new jobs and USD 6 billion
in foreign currency.
The National Tourism Plan proposes four major strategies: competitiveness in regional
development, connectivity, promotion, and improved governance. The Plan also includes
three horizontal strands: responsible and sustainable tourism, tourism culture, and Peace
Tourism. Other cross-cutting strategies relate to standards and security, infrastructure
development and investment, human resources, financing and institutional strengthening.
Specific actions focus on:
● Strengthening world-class destinations: Cartagena, the islands of San Andrés, Providencia
and Santa Catalina, Santa Marta and the Coffee Cultural Landscape,
● Promoting high value tourism products: health and wellness, nature and adventure and
Meetings, Incentives, Conventions and Exhibitions (MICE),
● Promoting new post-conflict destinations.
In addition, there are promotional campaigns and the development of tourism services
for those with disabilities.
The Vice Ministry of Tourism is developing two important initiatives. The Tourist
Corridors Strategy was launched in 2016 and comprises the promotion of 12 “corridors” or
regions with similar tourism themes or offers. This strategy seeks to reduce seasonality
and increase competitiveness. These corridors are classified into 3 types depending on the
quality, connectivity and tourism plans of the destination:
● Phase One – includes less developed corridors (Los Llanos and La Orinoquia),
● Phase Two – includes those ready for domestic tourism (Golfo of Morrosquillo and Sabana,
the Pacific, Northeast, Central and South Corridors and Antioquia-Choco),
● Phase Three – includes those that are ready for international tourism (the Sea Flower
Corridor, Caribe Corridor and the PCC Corridor).
The second initiative focuses on tourism development in areas of former conflict, in
line with the National Strategy of Tourism, Peace and Coexistence. The main objectives of
the Strategy are to use tourism to rebuild the social fabric and culture of the territories,
develop value chains and improve the quality of life of host communities through
responsible and sustainable practices (Box 1.23)
Another key area of focus in Colombia is the development of quality tourism, which is
promoted through the application of technical standards and the implementation of a
sustainability standard. For this purpose, Colombia developed a virtual platform that
certifies providers in quality tourism.
Sustainability tourism also focuses on destinations. Today, eight regions – Puerto
Nariño-Amazonas, City Center of Cartagena, Parque Arví, Guadalajara de Buga, Jardín,
Ciénaga, Mompox and Villa de Leyva – have received certificates as sustainable
destinations generating good practices around the country that might be replicable in
other regions.
The policy objective is to improve quality in the provision of tourism services and to
create a culture of excellence in tourism service providers and destinations. Colombia’s
strategic vision is to be known as a distinct, competitive and sustainable destination.

Statistical profile
Table 1. Colombia: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
United States 329 344 377 445 499
Venezuela 230 239 273 305 352
Brazil 83 90 125 138 182
Ecuador 107 114 127 152 167
Argentina 10 121 118 126 135
Outbound tourism
Top destinations
United States 979 1 121 1 235 1 256 1 291
Panama 347 342 416 407 409
Spain 187 190 196 221 319
Ecuador 321 320 348 320 286
Venezuela 475 607 523 372 110
Inbound tourism
International passenger transport receipts 903 1 148 1 062 991 994
Outbound tourism
.. Not available
1 2 http://dx.doi.org/10.1787/888933641697

Table 2. Colombia: Enterprises and employment in tourism

Number of
establishments
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Accommodation services for visitors .. 93 753 93 743 101 863 113 025 112 168
Road passenger transport 361 .. .. .. .. ..
Passenger transport supporting services .. 603 189 616 353 657 991 676 283 667 868
Transport equipment rental 162 .. .. .. .. ..
5 861 22 924 31 249 24 094 26 296 30 325
industry
.. .. .. .. .. ..
Other country-specific tourism industries 2 247 348 136 365 837 365 680 374 097 371 159
.. Not available
1 2 http://dx.doi.org/10.1787/888933641716
Table 3. Colombia: Internal tourism consumption

Million COP
2015
Total .. .. ..
Transport equipment rental services 29 .. 29
116 87 203
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933641735

II. PARTNER COUNTRY PROFILES – COSTA RICA
Costa Rica

Tourism makes a significant contribution to the Costa Rican economy. In 2016, there
were 3.1 million inbound arrivals, of which 2.9 million were overnight visitors. Foreign
exchange due to tourism as a proportion of the country’s GDP, stood at 6.4%, while tourism
accounted for 46% of the services exports and around 37% of total exports.
The tourism sector is expected to grow at an average of 6% over the period 2017-2021.
Over the same period, the International Monetary Fund estimates that the Costa Rican
economy as a whole will grow at an average of 3.9% per year.
By far the largest source market for overnight visitors in 2016 was the United States
(42.2%), followed by central America (24.8%), Europe (14.9%), and Canada (6.4%). The wide
range of activities available has had a positive impact on the average length of stay, which
is expected to remain between 11 and 13 nights. In 2016 there were 35.4 million nights
spent in all means of accommodation, a rise of nearly 60% since 2010.
In 2016, the tourism sector generated 149 000 direct jobs, representing 7.2% of total
employment. When considering direct and indirect jobs, this figure is estimated to reach
450 000, or 28% of total employment.

The Costa Rican Tourism Board (Instituto Costarricense de Turismo – ICT) is responsible
for tourism policy in Costa Rica and is mandated by law to promote Costa Rica as a tourism
destination, to foster the construction of tourist infrastructure and to monitor the quality
of the visitor experience.
A coordination body for the tourism sector, chaired by the Minister of Tourism, brings
together a wide range of institutions. These include the Costa Rican Tourism Board; the
Ministry of Economy, Industry and Commerce; the Ministry of Health, the Ministry of
Transport; Ministry of Environment and Energy; Ministry of Culture, Interior Ministry;
Costa Rican Institute of Ports of the Pacific; Board of the Atlantic Port Administration;
National Institute of Learning; National Institute of Housing and Urbanism, National
Institute of Aqueducts and Sewers; National Institute of Electricity; National Geographic
Institute; and the National Institute of Rural Development.
There are no institutions at the regional or local level with direct responsibilities for
tourism. However, ICT maintains close co-operation with local government, notably
through a specific mandate regarding management of the cantons.
The ICT budget for 2016 was approximately USD 69 million, including the cost of
construction of a new Convention Centre. Tax revenues provide 97.6% of the funding, while

the remaining 2.4% comes from interest on investments, concessions and property rentals,
and other minor non-tax income. Tax revenues come from two sources:
● A flat rate entry tax of USD 15, which must be paid by any person who enters the country
with a ticket purchased abroad. This contributes 55.5% of the total budget (Law No. 8694),
● A 5% tax on tickets sold in Costa Rica for any kind of international travel (Law No. 1917)
and a 5% tax on tickets where the route originates in Costa Rica (Law No. 8694),
contributing 25% and 17.1% to the total budget respectively.
Costa Rica: Organisational chart of tourism bodies
Costa Rican Tourism Board

(Board of Directors)
Touristic Pole Papagayo Gulf
Interagency Commission of Marinas and Executive President

Touristic Docks (Ministry of Tourism)
Regulatory Tourism Commission General Manager
Marketing and Tourism

Administrative Promotion Tourism Planning Management
Regional Offices
Finance (Research and and Development (Certification,
Evaluation) Tourism Services)

A number of issues and challenges are shaping tourism priorities in Costa Rica,
including the need to:
● Strengthen and develop new programs to promote differentiation, required to secure
competitive advantage,
● Foster participation of more companies and services with the aim of enhancing the
authenticity of the tourist experience,
● Innovate and add new products targeting high demand market segments,
● Improve the overall safety of tourists,
● Prevent tourist saturation,
● Improve the quality of services offered,
● Invest in infrastructure and equipment,
● Increase investment in marketing,
● Develop a regulatory policy framework for the sector,
● Help small-business owners to develop more efficient commercial management strategies.
Tourism policy, in line with the overall development path of Costa Rica and the
Sustainable Development Goals, is built around three axes: sustainability, innovation and
inclusion. These axes underpin the Tourism Development Plan prepared by ICT in 2017,
Plan de Desarrollo turístico de Costa Rica 2017-2021.

In pursuit of sustainability, the Plan seeks to:

● Guarantee efficient use of environmental resources,
● Preserve the socio-cultural authenticity of host communities, cultural heritage and
traditional values and promote a fair co-existence between tourism companies and host
communities,
● Guarantee a high level of satisfaction among tourists based on authentic experiences,
while raising awareness on the issue of sustainability.
In pursuit of innovation, the Plan seeks to:
● Guarantee long-term viable economic operations, with a fair distribution of benefits
among the stakeholders,
● Support and strengthen SMEs,
● Promote establishment of companies throughout the national territory.
In pursuit of inclusion, the Plan seeks to:
● Ensure that communities benefit from the positive social and environmental benefits
arising from the tourist industry,
● Invest in human capital development and the professionalization of the sector,
● Foster inclusion, equal opportunities, partnerships and entrepreneurships at the local level.
The primary objective is that the tourism sector in Costa Rica continues to be the main
driver of the economy, promoting a model that is sustainable, innovative and inclusive. To
achieve this objective, the Tourism Development Plan 2017-2021 aims to:
● Promote even distribution of demand throughout the territory, maintaining an average
length of stay between 11 and 13 nights,
● Achieve 6% growth in international arrivals, which translates into 3.9 million arrivals by
2021,
● Position Costa Rica as a differentiated sustainable tourist destination, in segments of
high perceived value and niches with high potential,
● Improve the competitiveness and organizational capacity of SMEs.
Launched in 2016, a new Social Progress Index (SPI) is being used as a tool to monitor
tourism’s contribution to sustainable development. The SPI allows Costa Rica to measure
the well-being of people in tourist destinations, serving as an indicator to better promote
and establish public-private partnerships, and to foster social progress and inclusive and
sustainable economic growth (Box 1.22).

Statistical profile
Table 1. Costa Rica: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Same-day visitors (excursionists) 199 213 233 .. 193
Top markets
United States 921 929 997 1 077 1 233
Central America 721 736 717 709 725
Europe 285 301 370 393 435
Canada 152 160 173 176 188
South America 136 164 138 156 181
Nights in all types of accommodation 27 181 e 28 164 e 31 333 e 30 061 e 35 394 e
Outbound tourism
Overnight visitors (tourists) 773 790 798 919 1 036
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
Total international expenditure 647 649 657 903 809
International travel expenditure 422 425 450 690 809
1 2 http://dx.doi.org/10.1787/888933641754

Table 2. Costa Rica: Enterprises and employment in tourism

Number of
establishments
2015 2012 2013 2014 2015 2016
Total .. 130 438 150 552 147 925 153 168 149 301
Tourism industries 3 402 e 106 747 124 794 121 528 125 835 122 658
Hotels and similar establishments 2 516 e 79 774 89 339 87 420 90 518 87 810
Food and beverage serving industry 418 e .. .. .. .. ..
Passenger transport .. 11 492 10 499 12 141 12 571 10 319
Water passenger transport 28 e .. .. .. .. ..
Passenger transport supporting services 26 e .. .. .. .. ..
Transport equipment rental 27 e .. .. .. .. ..
365 e .. .. .. .. ..
industry
Cultural industry .. 15 481 24 956 21 967 22 746 24 529
Sports and recreation industry 22 e .. .. .. .. ..
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933641773

II. PARTNER COUNTRY PROFILES – CROATIA
Croatia

In 2016, tourism’s share of Croatian GDP was 18.9% (indirect impact included) and
tourism revenue amounted to EUR 8.6 million, up 4.4% on 2015. Aggregate growth in GDP
was 2.9% in 2016, up from 1.6% in 2015, with trade, transport and tourism services
contributing most significantly to this increase. Similarly, the growth in tourism services
exports was a key factor in the overall growth in the export of services of 6.7% in 2016.
International tourists were responsible for 92.5% of tourist nights, up 9.6% on 2015,
while domestic tourist nights increased by 2.0%. The increase in the total number of
international arrivals primarily reflects growth in European markets, especially Germany,
Austria and Slovenia. The US and China are the largest non-European markets.
Commercial accommodation was responsible for 52.2% of overnights, and grew by 9%
compared with 2015.
Growth in demand for the pre- and post-season period is higher than for the two
months of the high season, although the latter still accounts for over 60% of annual tourist
overnights.
Growth of 6-8% in tourist arrivals and overnights is expected in 2017, with no change
in the relative contribution of leading source markets. In 2018, growth in both arrivals and
overnights is expected to exceed the projected average growth for Europe (3.4%), and for
the Mediterranean zone (4.9%).

The national body responsible for tourism is the Ministry of Tourism, which is in
charge of drafting strategies, policies and measures at national level and drawing up
proposals for legislation to regulate the tourism and hospitality industry, determining the
role and activities of the Croatian National Tourism Board, and tourism tax issues.
There are four Directorates within the Ministry: International Co-operation,
Development and Competitiveness of Tourism, the Tourist Board System and Destination
Management, and Legal Affairs. The Ministry regularly co-operates with hotel, travel agent
and other industry associations as well as with non-governmental organisations and trade
unions.
Tourism promotion is the responsibility of the Croatian National Tourism Board
(CNTB). The Minister of Tourism is, ex officio, its President, while the Executive Director
manages the CNTB’s daily operations and activities.
At the regional level, most county administrative offices have a department
responsible for tourism and handle the classification of, and issuing of permits for, private
accommodation operators.

In 2016, the overall State Budget was approximately HRK 142 billion, of which
HRK 172 million was allocated to the Ministry of Tourism. The total budget of the Croatian
National Tourist Board from all sources was HRK 259 million, a decrease of 2% on 2015.
Croatia: Organisational chart of tourism bodies
Parliamentary Ministry of Tourism

Tourism Committee
Chambers and Tourism Croatian National Tourist Board (CNTB)

Associations
(Private sector) County and City Government
Tourism Departments
County and City level

Tourist Boards

The main aim of the Croatian Tourism Development Strategy is to increase the
attractiveness and competitiveness of tourism by 2020. Key challenges identified by the
Ministry of Tourism in their strategic plans for 2016-2018 include:
● Improving tourism quality and product content, by developing new and improved
products and services through innovation, specialisation and sustainability,
● Asserting Croatia’s place in international tourism markets through use of effective
promotion, with the goal of strengthening the Croatian tourism brand, raising off-peak
turnover and average spend, and strengthening support for the tourism industry.
The following are examples of actions to address these challenges:
● Adapting Ministry activity in support of the Strategy,
● Re-aligning the CNTB’s Operational Marketing Plan,
● Establishing an inter-ministerial Council,
● Securing EU funding for tourism sector development,
● Implementing the necessary legal changes,
● Privatising remaining state-owned tourism properties,
● Developing new products for new tourism segments,
● Ensuring favourable conditions for tourism investment,
● Offering incentives for “greenfield” investments.
Since 2013, diversification of the tourism offer has been pursued through developing
actions plans and national programmes for specific sectors of the tourism industry, some
with a dedicated steering committee to oversee implementation. Examples include support
for organisation of cultural, gastronomic and sport events, tourist attractions, thematic
parks, cycling routes, beach management and improvements to family accommodation.

In 2016, CNTB gave financial support to tourist boards in less developed areas on the
mainland for practical actions to develop and improve the destination offer, education of
new or specialising service providers, and development, renovation and improvement of
public tourism infrastructure.
The Ministry of Tourism co-financed vocational courses with a focus on tourism
priorities, including strengthening competitiveness, new types of promotion and
improving destination management.
The Croatian National Tourist Board has launched a project designed to increase
Croatia’s competitiveness in the pre- and post-season (PPS) period. A “PPS destination”
label will extend the tourist season by rewarding destinations which develop an attractive
and competitive offer with added value in the PPS period.
The Ministry of Tourism has given financial support to SME development through an
increase in the quality and diversification of the tourism offer, and to sustainable growth
through the use of new technologies and social inclusiveness, the development of special
interest tourism, and greater international recognition. Grants have been aimed at small
businesses, rural homesteads and private renters. A grant allocation for construction of
new swimming pools is designed to support the competitiveness of the tourism sector.
A Tourism Development Fund, derived from concessions and sale of land, supports
local and regional entities, including national or nature parks, in developing public
infrastructure and resource conservation. In 2016, a call for proposals led to finance for
beaches, visitor and interpretation centres, and public infrastructure for cycle tourism.
Another call for proposals from the Ministry of Tourism has been designed to respond
to the social needs of vulnerable groups with the aim of improving access to employment
in the tourism and hospitality sector which will be financed by European Social Fund.
In order to support the sustainable development of tourism, the Croatian Sustainable
Tourism Observatory (CROSTO) has been established, in co-operation with the World
Tourism Organization, applying the European Tourism Indicator System (ETIS) developed by
the European Commission to monitor and measure tourism sustainability in Croatia. The
project was launched in 2017, with first results available by the end of the calendar year.
In 2016, the Croatian National Tourist Board (CNTB) established eVisitor, a national
online information system/platform for tourism. eVisitor provides a central platform for
tourism data management. A comprehensive database of over 160 000 accommodation
providers enables online check-in and check-out by all providers, as well as tourist offices
(national/regional/local) across Croatia. Today, eVisitor is used by all tourist boards (over 300),
all registered accommodation providers, and the Croatian National Tourist Board and its
representative offices in 16 countries abroad. In addition, it is utilised by the Ministry of
Tourism, the Ministry of Administration, and the Ministry of the Interior, Customs
Administration and Inspection Services, the Central Bureau of Statistics, and other
stakeholders involved in shaping, improving, and monitoring the tourism sector (Box 1.14).

Statistical profile
Table 1. Croatia: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 15 088 15 843 16 515 12 195 8 803 |
Overnight visitors (tourists) 6 056 6 225 5 411 4 040 2 926 |
Same-day visitors (excursionists) 9 032 9 618 11 104 8 155 5 877 |
Nights in all types of accommodation 28 760 29 767 28 040 24 214 18 137 |
Hotels and similar establishments 3 134 3 592 3 624 2 605 1 888 |
Other collective establishments 1 473 1 691 818 1 030 442 |
Private accommodation 24 153 24 484 23 598 20 579 15 807 |
Inbound tourism
Top markets
Germany 1 853 1 932 1 989 2 124 2 277
Slovenia 1 054 1 067 1 102 1 192 1 299
Austria 946 969 1 019 1 120 1 238
Italy 1 051 1 017 1 061 1 111 1 120
Czech Republic 647 652 661 696 689
Other collective establishments 18 271 19 602 19 657 20 631 51 224 |
Private accommodation 20 229 21 052 22 649 25 256 .. |
Outbound tourism
Same-day visitors (excursionists) 1 646 2 517 1 875 1 777 967
Top destinations
Bosnia and Herzegovina 643 627 523 404 283
Germany 291 333 308 261 278
Italy 271 289 257 452 203
Austria 277 248 304 258 169
Slovenia 268 200 314 183 144
Inbound tourism
Outbound tourism
Total international expenditure 964 922 861 771 945 e
International travel expenditure 928 902 842 756 945 e
1 2 http://dx.doi.org/10.1787/888933641811

Table 2. Croatia: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 21 429 54 937 55 928 61 494 60 849 68 121 |
Accommodation services for visitors 2 624 31 036 30 868 31 206 31 469 34 656 |
Food and beverage serving industry 17 166 18 506 19 839 24 473 23 925 28 011 |
1 639 5 395 5 221 5 815 5 455 5 454 |
industry
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933641830
Table 3. Croatia: Internal tourism consumption

Million EUR
2011
Total .. .. ..
Tourism characteristic products 809 3 984 5 145
Accommodation services for visitors 200 1 788 2 341
Food and beverage serving services 302 1 555 1 857
67 74 140
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933641849

II. PARTNER COUNTRY PROFILES – EGYPT
Egypt

The tourism industry, involving around 70 sub-sectors, has always been an important
economic activity in Egypt. Travel receipts constituted the sixth largest source of foreign
currency with international tourists generating a total of USD 2.6 billion in revenue.
Tourism contributed (directly and indirectly) 11.3% of Egypt’s GDP in 2015/2016. It accounts
for 23% of total services exports.
International tourist arrivals to Egypt reached 5.4 million visitors in 2016 (32.7 million
tourist nights). About 12% of inbound tourists are from Germany, 19% from other Western
European countries, 15% from Eastern European countries and 36% from Arab countries.
According to Egypt’s Tourism Satellite Account (TSA) for 2014, the labour force working
in tourism stood at 1.8 million individuals, representing 6.3% of the total labour force and
7.2% of total employment in Egypt. Around 74% of employees in tourism are full-time with
26% working on a temporary basis or part-time.

The Ministry of Tourism is responsible for tourism policy and for establishing a
coherent legal and regulatory framework for tourism development. Two tourism
authorities fall under the Ministry:
● The Tourism Development Authority works primarily on setting and implementing
regulations for tourism projects and investments, by assisting with the provision of land
and facilitating access to loans for developing infrastructure projects,
● The Egyptian Tourism Authority (ETA) is responsible for promoting inbound and
domestic tourism. It manages the development and diversification of the tourism
product, both regionally and internationally.
The Egyptian Tourism Federation (ETF) is composed of five tourism industry business
associations – the Hotels Association, the Travel Agents’ Association, the Chamber of
Tourist Establishments, the Chamber of Tourist Commodities and the Chamber of Diving
and Water Sports. It works closely with the Ministry of Tourism in areas related to tourism
planning, and in managing the Tourism Workforce Skills Development Project. By law, the
ETF’s views are considered before any new legislative measures are taken.
The Ministry recognises the need to support coordination with other ministries and
institutions for effective tourism policy and is working to improve co-operation among all
relevant stakeholders. To assist in this process, the Ministry has adopted a concept of
decentralisation in tourism to ease communication between the government and the
private sector, implemented effective structures for the management and development of
tourism activity, adapted laws and regulations to attract investment, maintained the

stability of private sector participation (represented by the ETF and its five chambers) by
strengthening relations with tourism clusters such as investor associations and tourism
committees in the chambers of commerce, and sought to provide regular, accurate and
transparent data.
The Supreme Council for Tourism helps to fast track progress by removing barriers. It
involves eleven ministries and the ETF, and is chaired by the President.
The general budget for tourism promotion is around USD 67 million which is directed
towards external activities including: launching a new branding campaign over the next
three years for global marketing, setting up interactive advertising in touristic sites,
enhancing public relations and optimising search engines. These activities are managed by
the ETA and financed by the Tourism Fund Unit at the Ministry. The Accountability State
Authority (ASA), an external government agency, monitors and evaluates the fund
expenditure to ensure a transparent process.
Egypt: Organisational chart of tourism bodies
Ministry of Tourism
Egyptian Tourism
Tourism Development
Authority
Authority (TDA)
(ETA)
Research and Technical Tourism Activities and Tourism Companies Hotels and Tourism
Planning Office of the Minister
Directorate Internal Offices and Guides Establishments
Egyptian Tourism Egyptian Chamber

Federation Egyptian Hotels Egyptian Travel Egyptian Chamber of Chamber of Diving
of Tourist
(ETF) Association Agents Association Tourist Commodities and Water Sports
Establishments
Source: OECD, adapted from Ministry of Tourism, 2018.

Egypt’s national strategy considers tourism as an important national industry and
seeks to create a suitable environment to support tourism. Tourism faces many challenges
and new policies have to be set to enhance a competitive, sustainable and inclusive
tourism industry. Such challenges include:
● Infrastructure: restrictions on charter airlines, the railways etc.,
● Workforce: qualification gaps, the need for “on the job” training, technology skills and
certified instructors, technical education and vocational training, and quality of service,
● Complex legislative and licensing frameworks: the new Tourism Law is yet to be
implemented,
● Safety and security: hygiene, traffic safety, emergency systems, hotel standards, public
security and tourism awareness,
● Marketing and promotion: branding and public relations,
● Sustainability issues: energy efficiency, the use of solar and renewable energy sources,
water consumption, biodiversity, solid/liquid waste and carbon emissions.

The sustainable tourism strategy is currently being revised with new targets for 2030.
The priorities are to increase value, to achieve high and sustainable economic growth,
alleviate poverty, address income disparities, create productive jobs and increase gender
equality. The strategic targets are to:
● Attract 20 million international arrivals,
● Raise the average tourist expenditure per night by 50%,
● Increase Egypt’s share of world tourism to 1.5%,
● Double Egypt’s share of Arab tourism,
● Raise tourism revenues to USD 20 billion,
● Attract USD 10 billion of new foreign direct investment in tourism.
The strategy seeks to address the challenges and achieve its targets through landmark
reforms and investments. Initiatives include:
● Institutional change: Establishing the Tourism Development Authority and Ministry of
Tourism as a one-stop-shop for licenses and permits, developing an intranet system
linking hotels, chambers and the Ministry, and establishing an advisory committee of
experts headed by the minister.
● Connectivity: Providing a new entry regime for many source markets with an E-visa
system and support for the private sector when establishing new routes or enhancing
frequency for travel.
● Marketing and promotion: Presenting products and services in strategic markets using
innovative and smart techniques including, a new marketing website with 14 languages,
an online campaign in traditional markets and China and India, better management of
social media, working with bloggers, a new cultural tourism commercial, and promotion
of the new VAT refund system. These activities will support traditional promotion and
marketing tools.
● Investment: Developing and diversifying tourism products and services, responding to
customer needs and trends, building high quality visitor experiences, developing a
strong sense of place and style for Egypt and for the five internal destinations.
● Sustainability: Establishing eco-principles and a “green” tourism unit, heritage preservation,
a “Green Star Hotel” programme monitoring the transformation of hotels to
environmentally friendly management and efforts to enhance environmental awareness
in the sector.
● Workforce: Promoting a National Skill Standards Project, a culinary training centre,
enhanced capacities in tourism establishments, and an accreditation and certification
system.
Egypt will apply the principles of social inclusion in its approach to tourism. It will
target the citizens and communities of Egypt as primary beneficiaries by providing
opportunities for employment and income generation, by positively contributing to
government programs, by supporting quality of life and environmental excellence and by
developing communities and society. Investments should cover skill development and
training to enhance human resource development and capacity building across the sector.

Statistical profile
Table 1. Egypt: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 16 725 19 549 20 053 20 548 ..
Same-day visitors (excursionists) 9 269 10 836 11 125 11 400 ..
Inbound tourism
Top markets
Germany 1 165 885 877 1 011 654
United Kingdom 1 012 955 906 869 231
Italy 719 504 400 333 131
France 318 192 145 137 101
Russian Federation 2 518 2 394 3 139 2 390 54
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933641868

Table 2. Egypt: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries .. 1 706 700 1 698 800 1 752 000 1 992 665 ..
Passenger transport .. 1 026 500 1 020 500 1 068 000 1 175 486 ..
Air passenger transport .. 34 500 28 600 24 000 23 710 ..
Railways passenger transport .. 63 500 60 100 66 000 55 970 ..
Road passenger transport .. 914 000 927 600 968 000 1 078 428 ..
Water passenger transport .. 14 500 4 200 10 000 17 378 ..
Transport equipment rental .. 2 300 2 200 1 000 4 151 ..
18 525 70 100 58 200 48 000 63 167 ..
industry
Cultural industry .. 14 400 13 500 12 700 18 251 ..
Sports and recreation industry .. 31 200 34 500 26 000 31 290 ..
.. 12 500 12 700 13 000 22 897 ..
Other country-specific tourism industries .. 16 800 17 900 18 600 481 ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933641887
Table 3. Egypt: Internal tourism consumption

Million EGP
2014
Total 22 096 98 112 138 737
Transport equipment rental services .. 297 297
1 006 5 770 6 776
industry
Country-specific tourism characteristic goods 96 5 097 5 193
Country-specific tourism characteristic services .. 1 224 1 224
Non-consumption products .. 3 037 3 037
.. Not available
1 2 http://dx.doi.org/10.1787/888933641906

II. PARTNER COUNTRY PROFILES – LITHUANIA
Lithuania

In 2016 the total contribution (direct and indirect) of travel and tourism in Lithuania
amounted to 5.3% of national GDP (WTTC). It has also been estimated that tourism
supports 47 000 jobs in the country. In 2016 receipts from foreign tourists and travellers
amounted to EUR 1.3 billion, an increase of 5.4% on 2015.
The tourism market in Lithuania is differentiated between regular visitors from
neighbouring countries (Latvia, Estonia, Poland, Belarus and Russia) and those from further
afield, including the other EU countries and more distant markets. The latter are attracted
by the country’s culture and historical heritage, while the former come for activities such
as wellness treatments, shopping, and visiting friends and relatives.
Domestic tourism has been growing in Lithuania and is seen as an important source
of revenue for destinations and as a way for addressing seasonality.
In 2016, 387 hotels with 13 539 rooms were recorded in Lithuania, with an average
occupancy rate of 51.7%, representing an increase from 49.8% in 2015. There is a particular
demand for more hotel rooms in the capital, Vilnius.

The main organisation for tourism policy in Lithuania is the Ministry of Economy (the
“Ministry”), whose Tourism Policy Division is responsible for: tourism policy making,
tourism planning, international co-operation, and planning EU support. Sitting under the
Ministry, the Lithuanian State Department of Tourism is responsible for: implementation
of the tourism policy, targeted tourism marketing, tourism market supervision, and
implementation of EU projects.
The Tourism Council is an advisory body chaired by the Ministry, and has members
from related ministries and tourism business associations.
There are three main tourism business organisations in Lithuania:
● The Lithuanian Chamber of Tourism. This represents nine tourism business associations,
covering hotels and restaurants, countryside tourism, health resorts, national tourism
business, camps, castles and manors, private healthcare establishments, spas, and golf,
● The Lithuanian Tourism Association, representing tour operators and agencies,
● The Lithuanian Medical Tourism Association, representing medical establishments.
The general state budget for tourism was EUR 7 million in 2016 and EUR 7.3 million in
2017.

Lithuania: Organisational chart of tourism bodies
Ministry of Economy
National level
Tourism Policy Division

Tourism Council
State Department of Tourism

under the Ministry of Economy Tourism Industry
Chamber of Tourism of the

Republic of Lithuania
Lithuanian Tourism Association

Local level Local Tourism Information
Municipalities (60)
Centres (52)
Source: OECD, adapted from the Ministry of Economy, 2018.

The main challenges facing tourism in Lithuania are seasonality, accessibility and
connectivity, the supply of tourism services and quality products, consumer protection, and
the digitalisation of tourism. Additional challenges identified as of high importance include
preserving cultural and natural heritage, improving education and skills, improving socio-
economic data, and increasing competitiveness against other destinations.
The National Tourism Development Programme for 2014-2020 sets out the main
tourism development objectives, goals and priorities in Lithuania for the period to 2020 and
is based on sustainable tourism principles. The overall aim is to increase the
competitiveness of the tourism sector.
The Programme emphasises that to maintain tourist flows it is necessary to develop
competitive tourism products, expand tourism infrastructure, promote the export of
tourism services to foreign countries, take effective marketing and communication
measures and increase awareness about Lithuania. The Programme also aims to improve
the quality of services in Lithuania as a tourism destination, as well as reduce seasonality.
The main measures in Lithuania aimed at tackling the key high-priority challenges are to:
● Develop public and private infrastructure in the priority areas of tourism development,
● Create and develop attractive tourism routes,
● Improve the country’s accessibility,
● Increase the qualifications of employees of the tourism sector and improve their
entrepreneurial skills,
● Strengthen consumer protection in the tourism sector and supervision of travel services’
providers with the view of better enforcement of the relevant EU and national legislation,
● Stimulate the certification and the accreditation of tourism services providers,
● Stimulate the creation and the implementation of e-marketing projects,
● Implement integrated marketing activities in the priority tourism markets,
● Develop the marking and information system for tourist sites,
● Co-operate with neighbouring countries to implement joint international marketing
projects,

● Stimulate the creation of tourism clusters in order to initiate the implementation of joint
public and private tourism marketing projects,
● Increase the supply of cultural events and attractions out of tourist season.
Four priority tourism types have been identified in the Programme: cultural tourism,
business tourism, health tourism and green (eco) tourism. The Programme also covers the
priority regions for tourism development (Vilnius, the coastal area, the Nemunas Lowland,
the Southern Dzūkija, the Eastern Aukštaitija and the Žemaitija Highlands), which offer the
most attractive tourism destinations in the municipal territories. In these areas, there are
plans to promote and develop public and private infrastructure for the priority tourism
products identified. Also, maps are drawn for the European Union structural support to be
invested in tourism destinations.
At the end of 2015 the Lithuanian Strategy for Tourism Marketing for 2016-2020 was
approved by the Decree of the Minister of Economy. Marketing measures provided in the
Strategy are focused on raising awareness of Lithuania as a tourist destination in the priority
markets, development of competitive tourism products, and establishment of effective
communication channels. This can be achieved by rational use of Lithuanian natural and
cultural resources, promotion of national traditions and events, and presentation of tourism
services in domestic and international markets.
Health tourism has large growth potential in Lithuania. A feasibility study had
previously examined the experience of foreign countries in promoting health tourism,
analysed the international competitive environment, and evaluated the current situation
in the field of health tourism in Lithuania.
A particular aim is to position Lithuania as an attractive country for ecotourism. To
achieve this, it is important to ensure better promotion of Lithuania as an ecotourism
destination in priority source markets and strengthen the skills of the labour force inside
the sector. According to the data provided by the Association of the Rural Tourism of
Lithuania, only 20% of clients of the homesteads are foreign guests.
With the aim to achieve Sustainable Tourism Development Goals and identify the
most effective ways to increase the competitiveness of the tourism sector, the Ministry of
Economy recently initiated a survey on “Sustainable tourism development in Lithuania”.
The results were used to prepare guidelines for sustainable tourism development, which
will be targeted to the Ministry and the Lithuanian State Department of Tourism,
municipalities, tourism information centres, as well as the tourism business sector.

Statistical profile
Table 1. Lithuania: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Belarus 374 408 425 366 395
Latvia 190 199 229 254 274
Germany 162 166 174 189 203
Poland 191 183 162 175 197
Outbound tourism
Top destinations
Latvia 214 229 232 221 226
United Kingdom 210 229 205 213 211
Belarus 166 164 177 154 156
Poland 154 149 140 149 150
Germany 112 121 117 106 110
Inbound tourism
Outbound tourism
Total international expenditure 824 938 938 1 020 881 p
International travel expenditure 721 805 796 857 881 p
1 2 http://dx.doi.org/10.1787/888933641925

Table 2. Lithuania: Enterprises and employment in tourism

Number of
establishments2
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Accommodation services for visitors1 2 025 10 985 11 300 11 816 12 354 ..
Passenger transport .. 8 200 7 800 9 028 9 348 ..
Air passenger transport .. 400 .. 516 609 ..
Railways passenger transport .. 400 400 444 415 ..
Road passenger transport .. 7 200 7 200 7 893 8 140 ..
Water passenger transport .. 200 200 175 184 ..
Passenger transport supporting services .. 400 400 508 614 ..
Transport equipment rental .. 500 600 457 379 ..
349 2 800 3 000 3 117 3 286 ..
industry
Cultural industry .. 3 300 | 3 700 4 386 3 769 ..
.. .. .. .. .. ..
1. Data for accommodation service for visitors refer to number of establishments.
1 2 http://dx.doi.org/10.1787/888933641944
Table 3. Lithuania: Internal tourism consumption

Million EUR
2015
Total .. .. ..
Tourism characteristic products 491 497 988
Passenger transport supporting services 37 24 60
77 19 96
industry
Other consumption products 335 676 1 012
.. Not available
1 2 http://dx.doi.org/10.1787/888933641963

II. PARTNER COUNTRY PROFILES – MALTA
Malta

Tourism is a very important contributor to Malta’s economy. Current inflows consist of
2 million tourists, rising consistently from 1.4 million arrivals in 2010, and 630 000 cruise
passengers against a resident population of around 430 000. There has been above average
growth in the low season.
In 2016, total expenditure by inbound tourists was estimated at EUR 1.7 billion. Tourism
is estimated to generate 25 000 jobs directly accounting for 14% of total employment.
The top three inbound markets are the United Kingdom, Italy, and Germany which
together account for 52.5% of arrivals. British and Italian arrivals have grown consistently
in the past six years, while the German market has fluctuated.
The domestic market in Malta is relatively small and is only partially measured. It
consists mainly of tourism flows between the main island of Malta and the second island
of Gozo, although there is a small but growing tendency for residents of the main island to
spend overnights in local hotels.

Tourism is directly represented in the Cabinet of Ministers through a dedicated Minister
for Tourism who is also responsible for aviation policy. The Ministry has political responsibility
for various agencies and companies, including the Malta Tourism Authority (MTA), the
Institute for Tourism Studies (ITS), Air Malta, Malta Air Traffic Services, the National Aerospace
Centre, the Mediterranean Conference Centre, and the Malta Film Commission.
In the new legislature, the Ministry for Tourism (the “Ministry”) has been given
responsibility for entities such as the Grand Harbour Regeneration Corporation (GHRC),
Projects Malta and Projects Plus, which implement projects aimed at improving the local
tourism product including through private public partnerships. Projects underway include
the Valletta Entrance and Ditch Project by GHRC, and the Transport Links project by
Projects Malta and Projects Plus. This contributes to the aim of improving overall
coordination and implementation of national projects relevant to the tourism sector.
Cabinet meetings ensure that tourism is constantly on the national agenda, while the
direct representation of industry stakeholders on the boards of organisations such as MTA
and ITS ensure direct coordination with the private sector.
Given the small size of the country, there are no regional authorities. However, the
country is sub-divided into over 60 local councils with whom there is strong coordination,
particularly in the fields of zone management and product-related interventions. A
Foundation for Tourism Zone Development was recently established by the Ministry to enable
more effective coordination between national bodies, local authorities and private operators.

The budget for tourism administration is allocated by the central government. The
government provided a total budget of EUR 49 million in 2016 and EUR 69 million in 2017,
for the entities under the Ministry for Tourism.
Malta: Organisational chart of the tourism bodies
Minister for Tourism
Permanent Secretary
Policy Development Programme Strategy and Support

Implementation Directorate Directorate
Tourism External Transport Aviation Projects Film Industry
Airmalta Malta Freeport Corporation Malta Air Traffic Services Projects Plus Malta Film Commission
Grand Harbour
Malta Tourism Authority Malta Marittima National Aerospace Centre Film Finance Malta Limited
Regeneration Corporation
Mediterranean Conference Bureau of Air Accident

Tourism Studies Public Private Partnerships
Centre Investigation
Foundation for Tourism Institute for Tourism

Projects Malta Ltd
Zone Development Studies
Conventions Malta Yachting Malta Ltd

The Ministry has published a revised National Tourism Policy for the period 2015-2020,
which gives strong and clear directions to the sector, on the basis of which specific
strategic plans are formulated.
The Ministry also finalised a film policy which was launched in January 2016. This
articulates a vision up to 2020, with the aim of maximising the potential of both Malta’s
film servicing industry as well as the promising local film sector. This policy will serve to
transform Malta into a unique film destination.
Three fundamental principles guide the National Tourism Policy, namely:
● Managing visitor numbers,
● Raising the level of quality across the entire tourism value chain,
● Reducing seasonality.
These three principles will form the basis of the continued and successful sustainable
development of tourism over the forthcoming years.
Issues and challenges include: the risk of economic instability in source markets;
political instability in the region particularly due to proximity to North Africa; a heavy
dependence on air travel to sustain tourism inflows; the small size of the domestic market;
the peripheral nature of the destination in relation to its source markets; and the challenge

of maintaining peak volumes at current levels whilst channelling growth into off-peak
months.
In response to these challenges, priority objectives include:
● Improved airline connectivity,
● Continued market diversification to attract new geographic source markets and year-
round motivational segments so as to further ease seasonal skews in tourism inflows
● The upgrade of the product and service offer to allow for the delivery of a quality
experience to all visitors
● Optimising the relationship between volume growth and value growth to strengthen
economic returns.
The achievement of these objectives requires a national effort since some of the
responsibilities sit directly within the Ministry and the Malta Tourism Authority, while
others, especially those related to infrastructure and staff training, fall within the greater
remit of other Ministries. Air Malta as the national carrier also remains pivotal.
National development policies aim to integrate fully the requirements of sustainable
development and they feed into sectoral sustainable development strategies covering
different sectors which directly or indirectly influence the harmonious growth of the
tourism sector.
Given the small size of its domestic tourism market, Malta’s tourism industry almost
exclusively depends on foreign inflows for its sustained wellbeing and profitability, which
in turn relies on air transport. The Malta Tourism Authority has recognised the strong
relationship between growth of inbound tourism and the number of routes and seat
capacity. In response, Malta has embarked on a strategy to increase the number of direct
airline routes, which have risen from around 45 in 2006 to over 92 in 2016 (Box 1.16).
Over the years Malta has accumulated a vast body of regulations to govern tourism
service providers, including hotels and similar accommodation, catering establishments,
travel agents and tourist guides. A major exercise has recently been undertaken with the
dual objective of:
● Revisiting the extensive regulatory framework with a view to simplify, remove overlaps,
and reduce the number of relevant legal notices to a more manageable and reasonable
quantity.
● Changing the spirit of the law to ensure that the regulatory framework is better equipped to
react and adapt to a rapidly changing tourism industry, rather than acting as a deterrent.
Following a period of extensive consultation, the next step involves a Parliamentary
Debate to discuss and eventually approve the proposed changes to the Malta Travel and
Tourism Services Act (CAP409).

Statistical profile
Table 1. Malta: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Overnight visitors (tourists) 205 190 200 | 220 241
Nights in all types of accommodation 598 468 510 | 584 630
Hotels and similar establishments 284 93 e 109 | 127 109
Other collective establishments 173 180 12 | 15 12
Private accommodation 142 196 389 | 442 510
Inbound tourism
Top markets
United Kingdom 441 455 488 526 560
Italy 202 234 263 283 315
Germany 138 147 143 142 157
France 108 117 126 128 145
Spain 60 53 42 47 55
Other collective establishments 1 010 1 022 504 511 600
Outbound tourism
Total international departures 368 404 430 474 549
Top destinations
Italy 98 109 123 137 166
Germany 19 19 22 24 32
Spain 19 20 18 19 23
France 17 17 22 21 17
Inbound tourism
International passenger transport receipts 200 246 .. 295 ..
Outbound tourism
Total international expenditure 340 384 397 359 398 e
International travel expenditure 340 384 397 359 398 e
1 2 http://dx.doi.org/10.1787/888933641982

Table 2. Malta: Enterprises and employment in tourism

Number of
establishments1
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Accommodation services for visitors 225 7 322 7 577 6 198 5 856 5 594
Passenger transport 784 4 145 3 986 3 534 4 179 3 800
Railways passenger transport 0 .. .. .. .. ..
Road passenger transport 684 2 200 2 201 1 745 1 878 1 674
Water passenger transport 83 854 689 e 628 e 738 e 640 e
Passenger transport supporting services 224 1 771 1 985 2 210 2 144 3 119
Transport equipment rental 151 379 e 327 e 325 e 447 e 501 e
543 575 e 739 1 044 1 287 953
industry
Cultural industry 966 3 413 4 032 3 981 4 771 4 485
Sports and recreation industry 361 678 e 799 907 1 081 814
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933642001
Table 3. Malta: Internal tourism consumption

Million EUR
2010
Total .. .. ..
Tourism characteristic products 99 859 963
44 36 80
industry
Other consumption products 13 174 187
Tourism connected products 4 104 108
Non-tourism related consumption products 9 70 79
.. Not available
1 2 http://dx.doi.org/10.1787/888933642020

II. PARTNER COUNTRY PROFILES – MOROCCO
Morocco

Tourism makes a significant contribution to Morocco’s economy and is considered a
strategic sector for driving the country’s economic and social development. In 2016 it was
estimated that tourism accounted for 6.6% of GDP and 515 000 direct jobs, corresponding to
5% of total jobs. The sector generated MAD 77.3 billion in foreign currency income, of
which travel receipts accounted for MAD 64.2 billion.
Since 2010 the number of inbound tourist arrivals has increased, on average, by 2% per
year to reach 10.3 million in 2016. France is significantly the largest source market,
followed by Spain, the United Kingdom and Germany. There was a decline in arrivals from
the main markets in 2016, however, there has been an upturn in the first half of 2017. In
addition, there has been a particularly rapid growth in arrivals from China in the last two
years, although starting from a low base.
Domestic tourism has witnessed recent growth, with overnight stays in classified
hotels increasing by 8% in the first half of 2017 compared with the similar period in 2016.

The Ministry of Tourism, Air Transport, Handicraft and Social Economy (the “Ministry”)
is responsible for drafting and implementing the government’s policy for tourism. It contains
several different entities and directorates, with responsibilities for strategy, regulation,
development, quality, resources and training.
The external work of the central administration is relayed to the sub-national level
through seven regional and eighteen provincial representative bodies. They are mainly
tasked with:
● Supervising the framework and quality of tourist activities,
● Monitoring the development of the tourism product at the regional and the local level.
The delegations are responsible for ensuring the harmonious and integrated
development of regional and provincial tourism, in collaboration with the local authorities,
communities, and tourism professionals.
The following bodies are under the supervision of the Ministry:
● The Moroccan Society for Tourism Engineering, which aims to promote investments
through the implementation of the development strategy for tourism, by tracking the
main tourism projects,
● The Moroccan National Tourist Office, which is in charge of promoting, marketing and
growing the destination and air travel.

The Ministry maintains regular contact with different stakeholders within a clear and
efficient institutional framework. Several bodies preside over links to the private sector:
● Several Committees co-chaired by the Ministry and the National Tourism Confederation
focus on private sector engagement with the Vision 2020 Strategy, identification of key
issues, and convening relevant parties to respond to issues as they arise. These
Committees cover the following issues: governance, competitiveness, air travel, output
and investment, human capital, and sustainability.
● The Tourism Observatory, which is a public-private initiative set up in 2005 to support
the development of the tourism industry. Its main roles are information provision, and
monitoring of the development strategy for tourism.
The Ministry’s budget comes from the central budget and totalled MAD 619 million in
2017. The budget remains relatively stable compared to 2016. It is divided between the
various entities under the Ministry’s responsibility: 21.5% for the central administration,
9.9% for training schools, 48.5% for the Moroccan National Tourist Office, and 20.2% for the
Moroccan Society for Tourism Engineering.
Morocco: Organisational chart of tourism bodies
Ministry of Tourism, Air

Transport, Handicraft and Social
Economy
Department of Tourism
Moroccan National Tourist Office Moroccan Society for Tourism

(ONMT) Engineering (SMIT)
General Inspection General Secretariat
Direction of Strategy Direction of Regulation, Direction of Resources and

and Co-operation Development and Quality Training
Source: OECD, adapted from the Department of Tourism, 2018.

The national tourism policy was formulated in 2010, with an undertaking to maintain
tourism’s role as one of the drivers of Morocco’s economic, social and cultural development.
The aim is to make Morocco one of the world’s top 20 tourist destinations by 2020 and
establish the country’s sustainable development credentials in the Mediterranean basin.
When it first came to implementing the Vision 2020 strategy, the Ministry had to contend
with an economic and tourism environment beset by significant turmoil, namely the geo-
political situation in some countries.
The Ministry of Tourism, Air Transport, Handicraft and Social Economy, in collaboration
with all public and private stakeholders, is stepping up its efforts to inject further impetus

into the sector. To this end, there are plans to strengthen Morocco’s presence in traditional
markets and to expand into new, high growth, markets. One objective is to improve
Morocco’s visibility as a tourist destination, through promotional campaigns, partnerships
with tour operators, and hosting of major events.
The digital revolution is also reshaping the rules for promotion and distribution. In
particular the growth of online peer review and booking platforms are undermining
traditional intermediaries and shrinking the margins for hoteliers in Morocco. As a result,
digital development is considered a priority to enhance the sector and several actions are
planned to this end, in particular the referencing and leveraging of available accommodation,
as well as optimisation of the travel experience.
Actions are being taken to deliver tourism development based on the following core
values:
● Authenticity: for many decades, authenticity has been the foundation upon which
Moroccan tourism development and brand positioning has been built. This position, which
differentiates it from its direct competitors, now gives it a genuine competitive edge. Vision
2020 cultivates this historic choice through a proactive approach to the preservation,
conservation and enhancement of the Kingdom’s cultural and natural heritage.
● Diversity: Morocco’s undisputed comparative advantage is its diversity in terms of
territories and landscapes, natural resources and ecosystems, cultures and influences
(African and European). Vision 2020 promotes diversity through an ambitious spatial
planning policy.
● Quality: while the development of new capacity remains a strategic goal, Vision 2020
aims to significantly improve the competitiveness of all links in the tourism chain, and
in particular deepen the service culture and develop a compelling entertainment offer.
● Sustainability: in accordance with the general sustainability guidelines adopted for the
country, Vision 2020 puts sustainable development at the heart of its ambitions.
Also, the Kingdom of Morocco is attached to the values of openness, moderation,
tolerance and dialog for mutual understanding between all the cultures and the
civilizations of the world.
Under the tourism development strategy, the Ministry has put in place several tools to
ensure long-term monitoring, in particular:
● A statistical monitoring system of tourism activity in order to provide an accurate range of
indicators designed to meet the needs of actors in the tourism value chain. To this end, a
monthly survey is carried out of a representative selection of tourists (international
overnight visitors and Moroccans living abroad) in order to identify trends and better tailor
the tourism offer to the requirements of an increasingly demanding clientele.
● A strategic monitoring system, designed to anticipate changes in both the tourism
environment and supply and demand trends in world tourism, provide public and
private sector stakeholders with better visibility, and give tourism professionals a
decision-making tool to improve the management of their activities.

Statistical profile
Table 1. Morocco: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Nights in all types of accommodation 188 859 192 606 195 778 .. ..
Other collective establishments 49 464 50 948 52 222 .. ..
Private accommodation 134 458 136 474 138 249 .. ..
Inbound tourism
Top markets
France 1 770 1 782 1 798 1 564 1 450
Spain 731 683 684 627 616
United Kingdom 357 403 477 504 459
Germany 199 238 255 286 260
Belgium 255 273 267 244 239
Nights in all types of accommodation .. 121 575 120 822 110 597 112 407
Other collective establishments .. 11 642 11 423 9 153 9 514
Private accommodation .. 96 002 95 073 88 919 90 190
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
.. Not available
1 2 http://dx.doi.org/10.1787/888933642039

Table 2. Morocco: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. 480 000 e 500 000 e 505 000 e 507 000 e 515 000 e
Tourism industries 5 001 .. 391 800 e 391 800 e 393 300 e 399 300 e
Hotels and similar establishments 3 690 .. 125 000 e 128 000 e 128 500 e 130 500 e
Food and beverage serving industry .. .. 81 000 e 82 000 e 82 300 e 83 600 e
Passenger transport .. .. 32 000 e 34 000 e 34 100 e 34 600 e
1 311 .. 22 000 e 22 300 e 22 400 e 22 700 e
industry
Cultural industry .. .. 9 800 e 10 000 e 10 000 e 10 100 e
Sports and recreation industry .. .. 2 000 e 2 500 e 2 500 e 2 500 e
.. .. 120 000 e 113 000 e 113 500 e 115 300 e
Other industries .. .. 108 200 e 113 200 e 113 700 e 115 700 e
1 2 http://dx.doi.org/10.1787/888933642058
Table 3. Morocco: Internal tourism consumption

Million MAD
2014
Total .. .. ..
43 1 100 1 143
industry
.. Not available
1 2 http://dx.doi.org/10.1787/888933642077

II. PARTNER COUNTRY PROFILES – PERU
Peru

Tourism is one of the main economic activities in Peru. It is recognised as an engine for
economic, social and environmental development. It is the third most important source of
foreign exchange earnings, after mining and agriculture, and it represents the principal
source of services exports.
Tourism Gross Domestic Product represents 3.9% of Peru’s GDP, increasing to 6.9% if
domestic tourism is included. In 2016, tourism supported more than 1.3 million jobs,
directly and indirectly.
International arrivals in Peru have seen significant and steady growth in the ten year
period to 2016, when the figure reached 3.7 million.
The highest proportion of arrivals comes from Chile, which accounts for over 25% of
international visitors. The second most significant market source is the United States,
followed by Ecuador. Japan is an important generator of visits from Asia.
Domestic tourism in Peru generated over 42 million trips between cities and
departments in 2016. The average length of stay of domestic holiday trips is 5 nights,
generating an average spend of USD 466 per person.

The Ministry of Foreign Trade and Tourism (MINCETUR) is the lead authority for the
sector and it defines, directs, executes, coordinates and supervises the country’s foreign
trade and tourism policy, in line with the general State policy.
The Ministry of Foreign Trade and Tourism has two Vice Ministries, one of them is the
Vice Ministry of Tourism which has five directorates. One of these is the Directorate of
Tourism Development Policies, which is the responsible body for policy implementation,
including supervising compliance and formulating actions concerning the quality of
tourism services, environmental management in the sector, travel facilitation, tourist
protection and promoting tourism awareness in the country. The other directorates cover
strategy, research, crafts and casinos/gaming.
Moreover, there are two specialist advisory bodies comprising six to twelve members,
namely: The Tourism Advisory Committee and the National Council for Handicraft
Development (CONAFAR).
In all sectors of Peru, including tourism, the General Government establishes
coordination mechanisms with regional governments, local governments and other
entities, as required or appropriate to the nature of each policy.

The public sector budget of the tourism sector for 2017 was PEN 332.9 million,
distributed as follows: PEN 85.2 million for the Vice Ministry of Tourism of MINCETUR;
PEN 24.2 million for the Tourism Training Centre (CENFOTUR); PEN 134.8 million for the Peru
Exports and Tourism Promotion Board (PROMPERU), and PEN 88.7 million for the COPESCO
National Plan, MINCETUR’s executing unit in charge of investment tourism projects of
national interest.
Peru: Organisational chart of tourism bodies

Ministry of Foreign Trade and
Tourism
(MINCETUR) CENFOTUR
Tourism Training Center
PROMPERU
Exports and Tourism Promotion Board of Peru
Tourism Advisory Committee
CONAFAR
National Council for Crafts Development
Vice Ministry of Tourism COPESCO

National Tourism Investment Plan
General Directorate of General Directorate of General Directorate of

General Directorate of General Directorate of
Research and Studies Tourism Development Slot Machines and
Tourism Strategy Crafts
on Tourism and Crafts Policies Casino Games
Directorate of Monitoring and Management of Peru’s

Commercial Offices Abroad (OCEX)
Peru’s Commercial Offices Abroad (OCEX)
Source: OECD, adapted from the Ministry of Foreign Trade and Tourism, 2018.

Tourism in Peru is facing a range of challenges, which in part, stem from a growing
middle class in emerging markets and changing attitudes towards travel. This requires
improved infrastructure and travel facilitation, while also ensuring the safety of tourists.
A specific challenge is the need to develop occupational standards for workers in the
tourism sector, in order to improve competitiveness and boost job creation and economic
impact. Other issues include the mitigation of negative impacts on the environment and
local communities.
The main policy instrument is the National Strategic Plan of Tourism of Peru (PENTUR).
There are also a National Plan for Tourism Quality, a National Strategic Craft Plan, and a
National Artisan Register (RNA). The RNA is a tool to identify artisans, handicraft companies
or artisan associations. It enables the mapping of artisans in a defined geographic space,
named “Craft Conglomerates”, such as San Blas (Cusco), Quinua (Ayacucho), Lurín (Lima),
and their incorporation into tourist circuits.
The National Strategic Plan of Tourism has four pillars covering:
● The competitiveness and sustainability of tourism supply,
● Tourist market diversification,

● Travel facilitation,
● Sector strengthening, tourism awareness and vocational training.
The main objectives of the tourism policy are to:
● Incorporate continuous improvement in its processes, as a requirement for competitiveness:
improving the quality of services and products and increasing tourist awareness, in
harmony with the environment,
● Strengthen ties with the regional and local economy: increasing potential for social and
cultural benefit from tourism, improving the local environment, and making local
destinations ideal places to live, work and enjoy,
● Promote the development of sustainable tourism projects and activities that contribute
to the development of communities,
● Promote and implement measures that contribute to the control and prevention of
environmental pollution and biodiversity conservation.
The Peruvian Government, through the Ministry of Foreign Trade and Tourism has
launched an inclusive development Programme called Turismo Emprende that promotes the
creation, development and consolidation of private tourism-related enterprises through
activities that include aspects of conservation, sustainable resource use and economic
development. This programme has an annual fund of USD 763 000 for the next four years.
The main objective is to provide grants for the development of tourism ventures at the
national level. The Programme finances the improvement and expansion of established
businesses as well the creation of new enterprises, in the hotel, restaurant and travel sectors.
For new businesses, the programme can fund up to 100% of project costs.
The Exports and Tourism Promotion Board of Peru (PROMPERU) constantly monitors
the evolution of visitor demand in order to adjust tourism promotion strategies.
Sustainable tourism growth policies and initiatives have been oriented to social
sustainability and inclusive development. The latter include community based rural
tourism, social tourism, and an initiative called Al Turista, Lo Nuestro which promotes the
direct incorporation of local products (agricultural, livestock, fishery, handicrafts, etc.) in
the provision of tourism services. It aims to promote tourist supplies that incorporate
quality regional services and products purchased directly from local entrepreneurs into the
tourism value chain (Box 1.9).

Statistical profile
Table 1. Peru: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Total domestic trips 99 600 102 300 104 950 108 100 ..
Same-day visitors (excursionists) 64 700 65 900 66 950 68 300 ..
Inbound tourism
Top markets
Chile 807 886 904 985 1 056
United States 447 487 514 545 586
Ecuador 176 208 224 256 318
Colombia 134 135 152 165 190
Argentina 159 155 156 171 175
Outbound tourism
Top destinations
Chile 1 059 1 089 1 091 1 181 1 288
United States 198 223 259 289 305
Bolivia 341 318 315 290 270
Ecuador 137 147 161 154 136
Colombia 62 70 93 120 123
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933642096

Table 2. Peru: Enterprises and employment in tourism

Number of
establishments
2016 2012 2013 2014 2015 2016
Total .. 521 668 526 439 530 241 542 054 ..
Tourism industries .. 474 121 484 481 486 935 499 758 ..
Passenger transport .. 104 390 107 127 108 086 112 975 ..
Air passenger transport .. 4 422 4 638 4 703 4 917 ..
Railways passenger transport .. 430 450 474 497 ..
Road passenger transport .. 99 102 101 590 102 449 107 084 ..
Water passenger transport .. 436 449 460 477 ..
Transport equipment rental .. 493 514 535 557 ..
10 985 29 855 30 719 30 835 32 624 ..
industry
Cultural industry .. 25 818 26 064 26 253 27 379 ..
.. 8 871 9 126 9 141 9 478 ..
Other country-specific tourism industries .. 45 592 43 572 43 557 43 610 ..
Other industries .. 47 547 41 958 43 306 42 296 ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933642115
Table 3. Peru: Internal tourism consumption

Million PEN
2011
Total .. .. ..
615 336 951
industry
Country-specific tourism characteristic goods 584 542 1 127
Tourism connected products 681 39 1 082
Non-tourism related consumption products 2 141 209 3 287
.. Not available
1 2 http://dx.doi.org/10.1787/888933642134

II. PARTNER COUNTRY PROFILES – PHILIPPINES
Philippines

The tourism industry in the Philippines, which contributes 8.6% of GDP, has become a
powerful engine for socio-economic development both at the national and local level. In
2016 total tourism revenue amounted to PHP 2.42 trillion, of which domestic and inbound
tourism accounted for PHP 2.1 trillion (87%) and PHP 313 billion (13%), respectively.
Tourism now represents a significant element of household budget, with domestic travel
accounting for 19.8% of household final consumption.
Inbound receipts of USD 5.1 billion account for 8% of total export earnings, making
tourism among the top industries generating foreign exchange in 2016. The rise in inbound
revenue is attributed to the continuous growth of inbound visitors which in 2016 reached
6 million. The top sources of arrivals are Korea (24.7%), the United States (14.6%) and China
(11.3%). These countries are expected to keep their rank as top tourist arrivals for 2017 and
2018. Domestic travellers, which totalled 79 million in 2016, are also expected to grow in
line with the economy.
The tourism industry provided employment to 5.2 million Filipinos in 2016 (forecast to
be 5.8 million by 2018). The transportation and accommodation sector accounted for the
bulk of this employment at 37% and 34%, respectively. Employment in retail, entertainment,
recreation, and travel agency and tour operation, continues to increase.

The Department of Tourism is the primary planning, programming, coordinating,
implementing and regulatory government agency for tourism. It is responsible for the
development and promotion of the tourism industry, domestically and internationally, in
coordination with attached agencies and other government institutions. Dedicated units
within the Department are charged with the following responsibilities:
● Tourism development – includes offices for product development, tourism development
planning, research, and industry and manpower development,
● Tourism regulation, coordination, and resource generation – includes offices for tourism
standards and regulations, tourism coordination, tourism resource generation, and all
the regional and international offices,
● Special concerns and administration – includes the office for special concerns, the
legislative liaison unit, and services for financial management, administrative affairs,
legal affairs and internal audit.
A number of agencies and corporations are under the supervision of the Department
for programme and policy coordination, while continuing to operate under their respective
charters. These include the Philippine Tourism Promotions Board, the Tourism Infrastructure

and Enterprise Zone Authority, the Duty Free Philippines Corporation, the Intramuros
Administration, the National Parks Development Committee, the Nayong Pilipino
Foundation, the Philippine Retirement Authority and the Philippine Commission on Sports
Scuba Diving.
The Department of Tourism operates a network of regional offices around the country,
which implement rules and regulations on the accreditation of tourism enterprises,
coordinate with local government on tourism development, promotion and marketing,
collect data, provide training and information, and assist tourists and tourism enterprises.
The Department also operates offices in foreign countries to promote the Philippines as a
tourism destination.
The Department of Tourism funding for tourism development comes from the Annual
General Appropriations Act, which is approved by the Legislative body. Funding for tourism
promotion is sourced from the corporate funds of the Tourism Promotions Board, while
infrastructure development is sourced from the corporate funds of the Tourism Infrastructure
and Enterprise Zone Authority.
Philippines: Organisational chart of tourism bodies
Department of Tourism
Philippine Tourism Promotions

Board
Tourism Infrastructure and

Enterprise Zone Authority
Duty Free Philippines Corporation
Intramuros Administration Tourism Services and Tourism Planning

Regional Operations and Promotion
National Parks Development
Committee
Nayong Pilipino Foundation

Tourism
International
Tourism Regional Offices Planning and Marketing Overseas Offices
Standards (16) Information Communications (17)
Tourism
Philippine Retirement Authority Management Promotions
Philippine Commission on Sports

Scuba Diving

The vast natural and cultural assets of the Philippine are the strength of its tourism
industry. During the period of 2011-2016, the country adopted a sustainable tourism
development framework to address the various issues and concerns of the industry as well
as the needs of its diverse stakeholders. While there are continued problems in addressing
infrastructure deficiencies, improving the business climate (particularly reducing the cost
of doing business), and promoting social equity, the National Tourism Development Plan
(NTDP) 2016-2022 has identified two strategic directions that represent its two main
objectives: i) Improving competitiveness and enhancing growth; ii) Pursuing sustainability
and inclusive growth.

These strategic directions are closely interrelated and the successful implementation
of the action programs is dependent upon each other. The NTDP is aligned with the
overarching vision of the current administration called Ambisyon Natin 2040 which has a
goal to develop a foundation for inclusive growth, a high trust society and a globally
competitive knowledge economy. The NTDP is likewise in support of the Philippine
Development Plan and the Zero to 10-Point socio-economic agenda of the President.
The two strategic directions in the NTDP have led to the identification of major
programs for the tourism sector, with guiding principles to shape projects towards the
achievement of the Plan’s objectives. The Plan’s policy programs are as follows:
● Developing transport infrastructure – as the Philippines is an archipelago that is
primarily dependent on air and sea connectivity to bring in tourists, it is important to
make sure that airports and seaports are prepared to meet the requirements of both
foreign and domestic tourists. A multi-modal transport infrastructure will ensure
seamless travel within the country, which is crucial in the drive to disperse tourist traffic
to emerging destinations.
● Pursuing travel facilitation – which will necessitate the relaxing of entry requirements
and streamlining of processes, especially for high growth markets.
● Attracting tourism investments and improving the business environment as more
accommodation facilities are envisioned in major and secondary destinations.
● Developing products – the country has identified nine products that will cater to both
foreign and local tourists: nature, culture, sun and beach, leisure and entertainment,
MICE, medical and wellness, cruising, diving, and education.
● Expanding marketing programs that can deliver increased visitors and revenue. The mix
should ensure that any decrease in certain markets can be offset by growth in others.
There is also a push to increase branding awareness and conversion.
● Advancing human resources – various mechanisms and programs have been identified
to upgrade the skills and competencies of the tourism workforce to deliver a high quality
service.
● Improving quality standards – programs that promote initiatives to embrace quality
standards will be implemented by the industry.
For the second strategic direction on sustainability and inclusive growth, various
programs to achieve the vision of the tourism sector are set out, such as:
● Micro-Small-Medium Enterprises – programmes directed to address inclusivity and
sustainability issues for developing MSMEs are included in the NTDP which is anchored
on the President’s rural development program.
● Gender and equality – the tourism industry is committed to implement gender and
women empowerment policies and programs for the industry.
● Cultural offering – programmes to expand the country’s cultural offering will continue,
with an emphasis on the conservation and restoration of historic and heritage sites.
● Environment – implementation of the National Ecotourism Strategy and Action Plan will
continue with programmes on adapting green technologies that will be key to preserving
the environment, and developing climate change resilience.
● Tourism risks and crises – formulating measures to prepare for and respond to tourism
risks and crises.

Statistical profile
Table 1. Philippines: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Korea 1 031 1 170 1 175 1 340 1 475
United States 653 675 723 779 869
China 251 426 395 491 676
Japan 412 434 464 496 535
Australia .. .. 225 241 251
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
International passenger transport receipts 902 909 1 029 1 142 1 168
Outbound tourism
.. Not available
1 2 http://dx.doi.org/10.1787/888933642153

Table 2. Philippines: Enterprises and employment in tourism

Number of
establishments
2014 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries .. 4 561 000 4 709 000 4 820 000 4 971 000 5 224 000
Hotels and similar establishments 8 841 1 579 000 1 601 000 1 694 000 1 743 000 1 756 000
Passenger transport .. 1 675 000 1 746 000 1 713 000 1 779 000 1 927 000
.. 26 000 29 000 30 000 26 000 33 000
industry
Sports and recreation industry .. 338 000 343 000 349 000 349 000 368 000
.. 300 000 312 000 319 000 323 000 353 000
Other country-specific tourism industries .. 643 000 678 000 714 000 751 000 787 000
.. Not available
1 2 http://dx.doi.org/10.1787/888933642172
Table 3. Philippines: Internal tourism consumption

Million PHP
2016
Total .. .. ..
Consumption products 2 108 216 2 108 216 4 216 432
Tourism characteristic products 1 353 334 1 353 334 2 706 668
140 169 2 418 142 587
industry
Country-specific tourism characteristic services 312 208 39 243 351 451
.. Not available
1 2 http://dx.doi.org/10.1787/888933642191

II. PARTNER COUNTRY PROFILES – ROMANIA
Romania

Romania welcomed 10.2 million international arrivals in 2016, an increase of 9.6% on
2015. Of these, 2.5 million stayed overnight in commercial accommodation (up 10.6% on
2015). Germany, Italy, France and the United Kingdom were the main source markets in
2016, together accounting for 32.4% of overnight international visitors. Romanian’s made
nearly 47 million domestic trips in 2016, of which 15 million were overnight (down 7.3%),
generating nearly 20 million nights in hotels and similar establishments (up 8.2%). Despite
a decrease of 3.9% in 2016 to RON 14.5 billion, domestic travel receipts have demonstrated
strong growth in recent years, more than doubling from RON 6.9 billion in 2010.
In 2014, tourism directly contributed RON 12.5 billion (up 7.6% on 2013) or 2% of GDP.

The Ministry of Tourism and Culture (the “Ministry”) performs various functions,
including:
● Policies and strategies for tourism promotion and marketing aimed at international and
domestic markets, including promotion of the national brand,
● Policies and strategies for the development of destinations and products, including
investment programmes and collaboration with public and private bodies,
● Policies and strategies to increase the competitiveness of destinations, promoting
natural and cultural assets and working with businesses to improve service quality,
● Authorisation and control of the activities of the tourism industry,
● Evaluation and selection of applications for EU programmes.
At a national level the private sector is organised into associations based on different
sub-sectors of tourism (rural tourism, spa tourism, business tourism, ecotourism) or on
different professions (tour operators and travel agents, hotels, bed and breakfast, tour
guides, cooks and confectioners). There is also a Federation of Tourism Patrons.
An Inter-Ministerial Committee of Tourism, which brings together several ministries,
was established to help the integration and sustainable development of tourism, with a
focus on addressing environmental protection, economic measures, and the protection of
cultural and natural heritage.
The Consultative Council for Tourism brings together national representatives from
the public and private sectors and NGOs to discuss aspects of tourism policy.
Tourism related departments can be established within local authorities but are not
subordinate to the Ministry or other central bodies. Rather, the relationship is based on

co-operation. However, the Ministry is responsible for legal acts and regulations relating to
tourism that need to be implemented locally.
Local tourism associations at a regional, county or municipal level bring together the
public and private sectors, and NGOs.
The Ministry of Tourism has a budget of RON 80 million, from which RON 25 million is
utilised for investment in tourism infrastructure.
Romania: Organisational chart of tourism bodies
Inter-Ministerial Committee for

Tourism
Public Policies Unit
Ministry of Tourism Consultative Tourism Council

Minister Control Body
State Secretary
General Secretary
State Secretary Cabinet
Deputy General Secretary
International
Investments and relations, European Authorisation and
Marketing and tourist Office for enterprises Office for public
tourist development affairs and monitoring
promotion Division administration acquisitions
Division Community funds Division
Division

Tourism faces many challenges in Romania. These include the development of the
tourism infrastructure and the need to improve promotion, together with a shortage of
financial resources, a lack of collective vision and a passive attitude by the travel trade.
Many issues are structural, including creating the legal framework for running tourist
activities, frequent changes in tax policies, inadequate stakeholder collaboration, and lack
of professional managers for effective destination management.
The main policy document is the National Tourism Development Master Plan 2007-2026,
developed in collaboration with the UN World Tourism Organization. This is supported by
sectoral strategies, including the National Ecotourism Strategy (elaborated in 2009), the
National Strategy for Spa Tourism (elaborated in 2009), and the Marketing Strategy and
Operational Plan for Romania (2011-2015).
The strategic direction is towards the sustainable development of tourism and to a
higher value added model, powered by knowledge, innovation, improvement in living
standards and harmony with the natural environment. The short and mid-term strategic
objectives are to:
● Adopt the Tourism Law in 2017,
● Adopt the Master Plan for investments in tourism,

● Implement the law on holiday vouchers for public employees,

● Develop an integrated tourism strategy in order to adjust to global trends in the tourism
sector,
● Provide high quality human resources, which will lead to increased quality of tourism
services and raise the competitiveness of Romanian tourism,
● Adopt the law for Destination Management Organisations,
● Enhance the position of Romania as a tourism destination within European markets,
● Attract new segments and markets by respecting the principles of sustainability and
ethics in tourism.
There have been various achievements in the process of developing more sustainable
tourism. A specific area of focus has been in the field of ecotourism, with activities including:
the National Ecotourism Strategy; recognition of ecotourism destinations based on specific
criteria; the certification of 50 eco-products, with a further 16 undergoing certification; and
the development of walking routes and trails. Other achievements include training
programmes for people working in tourism.
Romania has been particularly active as a partner in international collaborative
programmes. Examples include:
● Coordination with the Ministry of Tourism of Bulgaria, in the promotion of culture,
tourism and interpersonal contacts within the EU Strategy for the Danube Region,
● Collaboration between Ministries of Tourism and of Culture within the Enlarged Partial
Agreement on Cultural Routes, established by the Council of Europe,
● Collaboration with the Ministry of Environment within the Carpathian Convention,
which aims to encourage co-operation for the protection and sustainable development
of the Carpathians, to improve quality of life and preserve natural and cultural values.
A particularly important initiative for 2017 is the adoption of the law regarding the
development and implementation of a three-tiered Destination Management Organisation
(DMO) structure (national, regional and local). The law will create a partnership between
the public and private sectors and NGOs and raise awareness of their roles in promoting
the tourism destination as a whole (Box 1.3).

Statistical profile
Table 1. Romania: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Germany 230 229 234 267 282
Italy 182 182 185 211 234
France 118 119 124 134 146
Hungary 90 99 217 120 138
Outbound tourism
Top destinations
Greece 147 98 106 137 136
Bulgaria 139 101 86 111 133
Turkey 197 117 105 99 103
Spain 122 53 56 60 65
Italy .. 45 37 47 52
Inbound tourism
International passenger transport receipts .. 416 398 386 ..
Outbound tourism
International passenger transport expenditure .. 108 224 272 ..
1 2 http://dx.doi.org/10.1787/888933642210

Table 2. Romania: Enterprises and employment in tourism

Number of
establishments1
2014 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries 43 993 368 952 348 871 349 375 .. ..
Air passenger transport 53 8 982 7 817 5 938 .. ..
Railways passenger transport 26 42 883 35 855 37 228 .. ..
Road passenger transport 6 507 98 124 93 175 86 824 .. ..
Water passenger transport 40 2 260 2 705 1 904 .. ..
Transport equipment rental 405 814 250 1 013 .. ..
2 237 6 753 10 366 14 707 .. ..
industry
Cultural industry 846 12 264 11 652 15 427 .. ..
3 197 .. .. .. .. ..
.. Not available
1 2 http://dx.doi.org/10.1787/888933642229
Table 3. Romania: Internal tourism consumption

Million RON
2014
Total .. .. ..
Passenger transport services 164 6 924 7 088
Air passenger transport services 36 2 426 2 462
.. 3 006 3 006
industry
Country-specific tourism characteristic goods 267 .. 267
.. Not available
1 2 http://dx.doi.org/10.1787/888933642248

II. PARTNER COUNTRY PROFILES – RUSSIAN FEDERATION
Russian Federation

A detailed calculation on the value of tourism to the Russian economy has been
undertaken by the Federal State Statistical Service, using internationally agreed
methodologies. This revealed that the share of Russian GDP attributable to tourism rose
from 3% in 2011 to 3.5% in 2014. Furthermore, in 2016, tourism is estimated to have directly
employed 508 228 people, up 20.4% on the previous year.
In 2016 the tourist industry in Russia finally recovered from the shocks of 2014-15,
stemming from the overall national and global economic situation, and the bankruptcy of
several major tour operators and the second largest air carrier.
Domestic tourism is significant in Russia and with a strong orientation towards
wellness-medical, historical, and religious tourism, while inbound tourism is mainly
driven by cultural-historic themes and events. Domestic tourism in 2016 experienced a
growth of 10.4% in overnight trips to 48.2 million, compared to 43.7 million the previous
year. High levels of early bookings in many popular destinations resulted in high
accommodation occupancy rates. In 2016, 24.6 million overnight international arrivals
were recorded (down 8.5%), with the two largest markets being China and Germany.
In 2016, international departures decreased by 7.9% to 31.7 million, compared to
34.4 million in the previous year.

The main executive body at the federal level is the Federal Tourism Agency
(Rosturizm), which is under the jurisdiction of the Ministry of Culture of the Russian
Federation. The Agency comprises five offices, covering: state tourism projects and tourism
security; legal matters; international co-operation; internal tourism and target
programmes; and general affairs.
Examples of the Agency’s activities include: regular provision of information on
tourism; legal changes and regulations; measures to support the improvement of the
industry; and registration of tour operators.
The National Tourist Marketing Centre (FSUE) and the National Tourism Development
Corporation fall under the jurisdiction of Rosturizm.
A Coordination Council was created for the Federal Target Programme (FTP) for the
Development of Domestic and Inbound Tourism 2011-18. This includes representatives of
the Ministry of Culture, Rosturizm, the Chamber of Industry and Commerce, the Public
Chamber and other associations, the Ministry of Agriculture, the Ministry of Sport, the
State Duma, the Council of the Federation, and the Ministry of Economic Development. The

Council facilitates coordination and co-operation with various agencies and interested
parties, including associations, experts and state enterprises.
Different powers for the implementation of tourism are vested in the federal
authorities and constituent entities, which operate below the federal level. The powers of
the constituent entities cover matters such as participation in tourism development
programmes, professional training, international activities and research. Local bodies in
the field of tourism also have powers in these areas as well as in promoting access to
tourism resources, participating in activities at different levels and the creation and
functioning of tourist information centres.
Rosturizm has no territorial bodies. The constituent entities fall under a variety of
ministries and agencies, which vary between the different republics and cities. Interaction
with Rosturizm depends on information exchange and the work of coordination councils
and working groups.
In accordance with the State Programme “Development of culture and tourism for
2013-2020”, the total federal budget appropriated for tourism development activities is
RUB 3.6 billion.
Russian Federation: Organisational chart of tourism bodies
Ministry of Culture
Federal level
Federal Agency for Tourism
Regional level
Regional Ministries Regional Agencies
Regional Departments Regional Committees
Source: OECD, adapted from the Ministry of Culture, 2018.

In the FTP for the Development of internal and inbound tourism in the Russian
Federation (2011-2018), the following factors were identified as constraining increased
competitiveness:
● Weak or absent infrastructure, as an obstacle for attracting private investment,
● Poor condition of tourism infrastructure in many locations,
● Lack of long-term credit instruments available to investors, with interest rates acting as
a disincentive for investment in tourism and recreation,
● Low quality of services in the tourism industry due to lack of professional personnel,
● Insufficient promotion of tourist products in world markets.

Additional current trends identified in the strategy to 2020 include:

● Growth in tourist arrivals from countries with an unstable political situation,
● Growth in outbound tourism from Russia, partly as a result of more relaxed visa regimes
in recipient countries, presenting a challenge for domestic tourism,
● Global growth in demand for nature tourism, presenting an opportunity for Russia due
to its wealth of natural assets.
Priorities identified in the FTP for Tourism 2011-2018 include:
● Development of the tourism and recreational product,
● Increase in the quality of tourism services,
● Promotion of the tourist product to international and internal markets.
The State Programme for the Development of culture and tourism for 2013-2020
identifies a range of national priorities for tourism:
● Preserving the cultural and historical heritage of people,
● Ensuring access by citizens to cultural values and participation in cultural life,
● Implementing the creative potential of the nation,
● Increasing the quality and accessibility of services in the field of domestic and international
tourism,
● Creating favourable conditions for sustainable development of culture and tourism.
The following measures are being taken in response to the priorities:
● Capital construction and modernisation of tourism products and infrastructure,
● Research and assessment of tourist potential of the regions to identify priority projects,
● Creation and implementation of territorial plans for tourism, with constituent entities,
● Development of a tailored system of training for the tourism and hospitality sector,
● Development of conditions for effective activities by self-regulating organisations,
● Implementation of the use of innovative technologies in tourism development and in the
management of quality of tourist services,
● Execution of information and promotion campaigns, including advertising on TV, in
electronic mass media and press, as well as outdoor advertising, execution of press-
tours and supporting the work of information centres and stations,
● Creation of competitive digital content of information sources,
● Organisation and hosting of international and pan-Russian tourism forums, exhibitions
and other activities,
● Implementation of the use of innovative technologies in the promotion of tourist products.
A network of national marketing centres has been established for the promotion of
Russian tourism products abroad. Managed by the FSUE (Visit Russia), these follow new
principles of partnership between state and businesses.
Various steps have been taken to further relax the visa regime for visiting Russia.
These include the identification of six short tours of up to three days, which are offered as
visa-free for foreign tourists.

Innovative and inclusive marketing approaches in Russia

An initiative to strengthen the awareness and image of Russia internationally, and to involve
Russian citizens, has been a competition to design a new logo to support the Russian tourist
brand. Ten finalists were identified, followed by a vote on the “Russia Travel” portal.
Tourism monitoring processes have included an analysis of consumer messages on social
media. A geographically distributed automated system (GDAS) has been used to collect data
from sources such as Twitter, Vkontakte, Facebook, Odnoklassniki, Google+, LiveJournal,
YouTube and Instagram, as well as from blogs, forums, reference sites, online-media and
thematic sites. Monitoring is used to establish ratings of tourist destinations and operators.
This data is used to check and supplement information on the national portal “Russia Travel”,
and for the identification of popular destinations and the compilation of tourist routes.

Statistical profile
Table 1. Russian Federation: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Overnight visitors (tourists) .. .. 25 438 26 852 24 571
Top markets
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Outbound tourism
Overnight visitors (tourists) .. .. 42 921 34 390 31 659
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
Outbound tourism
1 2 http://dx.doi.org/10.1787/888933642267

Table 2. Russian Federation: Enterprises and employment in tourism

Number of
establishments1
2016 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Accommodation services for visitors 20 023 386 359 375 322 399 146 402 577 466 643 |
Hotels and similar establishments 14 948 140 997 140 898 151 076 153 975 220 127 |
Passenger transport 1 616 .. .. .. .. ..
Road passenger transport 1 316 .. .. .. .. ..
12 395 42 370 43 973 41 337 17 316 39 969
industry
.. .. .. .. .. ..
1 2 http://dx.doi.org/10.1787/888933642286

II. PARTNER COUNTRY PROFILES – SOUTH AFRICA
South Africa

Tourism is a growth sector which is envisaged to play a major role in supporting
national economic growth in South Africa. In 2016, direct tourism GDP was estimated to be
ZAR 127.9 billion (up 7.8%), representing approximately 3% of total GDP. Tourism is also a
key contributor to employment, with 711 746 jobs (up 4.7%) directly attributable to tourism
in 2015, accounting for 4.5% of total employment.
A total of 10 million inbound overnight arrivals were recorded in 2016, a 12.8% increase
from 2015. The three leading origin markets were Zimbabwe, Lesotho, and Mozambique,
together accounting for over half of total overnight international arrivals (50.3%).
In the domestic market, there were 24.3 million overnight visitors in 2016 (down 0.7%),
who stayed 103.4 million nights in all forms of accommodation (up 0.9%), generating
ZAR 26.5 billion in domestic travel receipt (up 12.3% on 2015).

The Ministry of Tourism has had oversight of the tourism portfolio since its
establishment in 2009. This involves crafting policies and sector strategies as appropriate,
working closely with public and private sector stakeholders. Oversight is also exercised
over South African Tourism (SAT), the public entity responsible for the country’s
destination marketing at home and abroad.
At the provincial level, a Member of the Executive Council in each of South Africa’s
nine provinces is charged with responsibility for tourism. Each province also has a
provincial tourism marketing organisation, complementing the activities of SAT.
Horizontal coordination is undertaken through the National Tourism Stakeholder
Forum of the Department of Tourism, which consists of representatives of key ministries
and institutions with an impact on tourism, such as Statistics South Africa, the Airline
Association of Southern Africa and the Tourism Business Council of South Africa. Further
bi-lateral arrangements are in place with other ministries such as the Ministry of Home
Affairs and the Ministry of Transport. These involve tourism officials working in key policy
fora convened by the ministries to ensure the consideration of tourism impacts of any
policy proposals at their formulation stage.
The Department of Tourism’s budget for the fiscal period 2017-18 is ZAR 2.1 billion of
which 53% (ZAR 1.1 billion) is allocated to SAT. The remaining ZAR 1 billion is distributed
amongst tourism incentives, an expanded public works programme (including skills
development), destination development, enterprise development and visitor support services.
The SAT budget is deployed towards increasing the country’s global market share and
growing the domestic tourism market in a manner that promotes inclusive growth.

South Africa: Organisational chart of tourism bodies
Minister of Tourism
South African Tourism
National Department of Tourism
Tourism Research, Policy

Tourism Sector Support
Corporate Management and International Destination Development
Services
Relations

The Tourism Act of 2014 provides the overarching legislative context within which
tourism development and growth is pursued. The key framework document guiding both
public and private sector action since 2011 is the National Tourism Sector Strategy (NTSS).
A draft revised NTSS has now been published for public comment after which it will be
processed through the government system for approval by the Cabinet. It seeks to respond
to developments in the domestic and international environment and keep up with global
trends including changes in the demography of the tourist market and associated
consumer needs. The new NTSS envisions a rapidly growing South African tourism
economy that leverages the country’s competitive advantages in nature, culture and
heritage supported by innovative products and service excellence. The goal is to attract
5 million additional tourists to South Africa within the next five years.
Five strategic pillars have been identified to underpin future work addressing both
domestic and international tourism markets:
● Effective marketing,
● Facilitating ease of access,
● Enhancing the visitor experience,
● Improving destination management practices,
● Ensuring inclusivity in all tourism endeavours.
Once the revised NTSS is approved, the pillars will inform collaborative planning and
the implementation of agreed priority actions by the constituent parts of the sector.
A major new focus is the development of a system of destination management to
increase the country’s competitiveness. Initiatives include the provision of infrastructure
development, maintenance, and enhancement, and the diversification of tourism
products, experiences and routes. The emphasis will be on coordination of the tourism
investment portfolio and the prioritised projects to advance the establishment and
enhancement of tourism infrastructure that supports the current and future growth of the
sector. Targeted foreign and national investment opportunities including priority areas for
tourism product development are being coordinated. Investment in the development of
tourism products is critical for destination competitiveness and to meet the needs of both
domestic and international visitors.

The Department of Tourism is also developing a framework for precinct development,

with an emphasis on township and rural tourism. This framework will be implemented
through an initial township precinct pilot project and thereafter replicated in other viable
townships and rural areas across the country.
Following the launch of the Tourism Incentive Programme in the 2015/16 fiscal year,
implementation remains focused on key areas of intervention, namely:
● Market Access: assisting small businesses to access local and international markets
through targeted exposure,
● Tourism Grading: supporting small establishments to participate in the national grading
system thereby improving their ability to offer quality services and compete efficiently
in the market,
● Energy Efficiency: supporting energy efficiency initiatives,
● Universal Accessibility: promoting universal accessibility in tourism.

Statistical profile
Table 1. South Africa: Domestic, inbound and outbound tourism

2012 2013 2014 2015 2016
Domestic tourism
Inbound tourism
Top markets
Zimbabwe 1 848 1 935 2 144 1 901 2 029
Lesotho 1 618 1 461 1 502 1 395 1 757
Mozambique 1 104 1 117 1 283 1 200 1 268
Swaziland 769 836 918 838 894
Botswana 452 537 556 594 680
Nights in all types of accommodation 67 500 79 889 .. .. ..
Outbound tourism
Top destinations
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
.. .. .. .. .. ..
Inbound tourism
International passenger transport receipts 1 206 1 223 1 146 881 888
Outbound tourism
.. Not available
1 2 http://dx.doi.org/10.1787/888933641184

Table 2. South Africa: Enterprises and employment in tourism

Number of
establishments
2015 2012 2013 2014 2015 2016
Total .. .. .. .. .. ..
Tourism industries .. 646 390 657 766 679 560 p 711 746 p ..
Accommodation services for visitors 9 830 p 119 431 103 363 115 424 p 135 737 p ..
Hotels and similar establishments 2 725 p .. .. .. .. ..
Food and beverage serving industry .. 121 197 128 401 137 483 p 141 431 p ..
Passenger transport .. 225 709 236 052 234 822 p 242 335 p ..
Air passenger transport .. 36 242 31 861 34 750 p 31 737 p ..
Railways passenger transport .. 6 049 6 766 6 131 p 5 198 p ..
Road passenger transport .. 180 576 195 472 193 032 p 203 376 p ..
Water passenger transport .. 2 842 1 953 909 p 2 024 p ..
Transport equipment rental .. 18 265 13 151 7 768 p 10 295 p ..
.. 17 784 24 744 30 146 p 29 134 p ..
industry
Cultural industry .. 12 590 16 045 15 904 p 17 122 p ..
Sports and recreation industry .. 16 144 17 055 16 735 p 21 121 p ..
.. 115 270 118 956 121 277 p 114 571 p ..
1 2 http://dx.doi.org/10.1787/888933641203
Table 3. South Africa: Internal tourism consumption

Million ZAR
2015
Total .. .. ..
Railways passenger transport services 381 p 186 p 567 p
Water passenger transport services 10 p 5p 15 p
Transport equipment rental services 3 047 p 1 558 p 4 606 p
7 223 p 3 034 p 10 257 p
industry
Cultural services 178 p 192 p 370 p
Tourism connected products 14 080 p 16 187 p 30 267 p
Non-tourism related consumption products 26 010 p 27 557 p 53 567 p
1 2 http://dx.doi.org/10.1787/888933641222

ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
The OECD is a unique forum where governments work together to address the economic, social and
environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and
to help governments respond to new developments and concerns, such as corporate governance, the
information economy and the challenges of an ageing population. The Organisation provides a setting
where governments can compare policy experiences, seek answers to common problems, identify good
practice and work to co-ordinate domestic and international policies.
The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic,
Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea,
Latvia, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic,
Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The European Union
takes part in the work of the OECD.
OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and
research on economic, social and environmental issues, as well as the conventions, guidelines and
standards agreed by its members.
OECD PUBLISHING, 2, rue André-Pascal, 75775 PARIS CEDEX 16

(85 2018 01 1 P) ISBN 978-92-64-28738-9 – 2018
OECD Tourism Trends and Policies, published biennially, analyses key policy and governance reforms in
tourism. It builds on the work of the OECD Tourism Committee, within the OECD Centre for Entrepreneurship,
SMEs, Regions and Cities (CFE). The report is an international reference and benchmark on how effectively
countries are supporting competitiveness, innovation and growth in tourism.
The 2018 edition analyses tourism performance and policy trends across 49 OECD countries and partner
economies. It highlights the need for coherent and comprehensive approaches to tourism policy making,
and the significance of the tourism economy, with data covering domestic, inbound and outbound tourism,
enterprises and employment, and internal tourism consumption. Thematic chapters explore how understanding
the potential impacts of megatrends can better shape the future of tourism, and the need for a shift towards
investment and financing for sustainable tourism growth.
Consult this publication on line at http://dx.doi.org/10.1787/tour-2018-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases.
Visit www.oecd-ilibrary.org for more information.
ISBN 978-92-64-28738-9
85 2018 01 1 P
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Photo credits: Cover © vectomart/Shutterstock.com; © saref/Shutterstock.com.

Corrigenda to OECD publications may be found on line at: www.oecd.org/about/publishing/corrigenda.htm.

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 3

4 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 5

Chapter 1. Tourism trends and policy priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Chapter 2. Megatrends shaping the future of tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Chapter 3. Towards investment and financing for sustainable tourism. . . . . . . . . . . . . 93

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 7

8 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

Follow OECD Publications on:

This book has... StatLinks2

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 9

Policy statement – tourism policies

Tourism, an engine for economic, sustainable and inclusive growth

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 11

Fostering a whole-of-government policy approach

12 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 13

We call on the OECD to continue to provide us with strong evidence, innovative

14 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

International Recommendations for Tourism Statistics (IRTS)

16 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

statistics are an important statistical source of information on domestic and inbound

Tourism Satellite Account: Recommended Methodological Framework

Tourism characteristic products and activities

Tourism characteristic consumption products Tourism characteristic activities (tourism industries)

Accommodation services for visitors Accommodation for visitors

Internal tourism consumption

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 17

Three forms of consumption are distinguished:

Tourism Direct Gross Domestic Product and other aggregates

Balance of Payments and International Investment Position Manual –

18 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

international passenger transport receipts) and that of residents by non-resident carriers

Metadata and sources

Codes used for currencies

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018 19

● EGP Egyptian Pound

Symbols for missing data and abbreviations

20 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

Key policy messages

Preparing for megatrends:

Promoting investment and financing for sustainable tourism:

22 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

Active policies for tourism

OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

Tourism trends and policy priorities

T ourism is a highly important economic sector, making a significant contribution to the

26 OECD TOURISM TRENDS AND POLICIES 2018 © OECD 2018

Figure 1.1. Direct contribution of tourism to OECD countries

Tourism as % of GDP Tourism as % of total employment

OECD average 6.9%

Notes: GDP data for France refer to internal tourism consumption.

Table 1.1. International tourist arrivals, 2012-16