Tourism and creative economy ministry targets to attract foreign exchange revenues Rp13 trillion (US$928.57 million) from foreign tourists in 2020, said the government official on Tuesday (02/25) - Photo: Special

JAKARTA (TheInsiderStories) – Tourism is one of the fastest growing industries in the world, and Asia is one of the hottest destinations, the Asian Development Bank (ADB) latest report showed. Since 2011, global international arrivals have been growing at an average annual rate of 4.8 percent, adding about 55 million new visitors each year, to reach 1.4 billion in 2018.

Furthermore, international tourist receipts expanded by 4.3 percent per year since 2011, adding an average of US$54 billion annually, to reach $1.34 trillion in 2018. Domestic tourism to has made impressive strides, with global receipts hitting $4.1 trillion in 2018, far more than international tourism.

In Asia too tourism is taking off. Of the 1.4 billion visitors who traveled abroad in 2018, 343 million went to Asia. And, of the $1.34 trillion of international tourism receipts in 2018, $390 billion was spent in Asia, the report shows.

Asia thus accounts for 25 percent of international visitors and 29 percent of international tourist spending. International arrivals rose by 65 percent in Asia between 2010 and 2018, compared to 47 percent globally.

According to ADB, the economic effect of tourism can be measured narrowly – calculating only direct effects such as expenditures on hotels and airlines – or more broadly – including indirect effects such as tourism-related investment.

For example, the purchase of new airplanes or construction of hotels. Globally, the direct and total economic impact of tourism amounted to $8.60 trillion and $2.67 trillion in 2018, respectively. In Asia, the corresponding figures were $2.94 trillion and $0.92 trillion.

Like its impact on output, the impact of tourism on employment can be measured narrowly or more broadly to encompass effects such as tourism-related investment. In 2018, tourism directly generated 123 million jobs worldwide (3.8 percent of total global employment) and its contribution to global employment is even larger if we include secondary effects – 319 million jobs or 10 percent of global employment.

The corresponding figures for Asia are 78 million and 180 million jobs. Tourism can also contribute to inclusive growth and more balanced national development by bringing investment to remote areas with tourist attractions.

Notwithstanding the huge benefits of tourism, ADB says concerns about its sustainability are mounting. In destinations from Iceland to Palau, tourism is proving to be a victim of its own success with too many visitors overwhelming local communities, causing prices, rents and land values to rapidly rise, and threatening natural and cultural heritage. The term over tourism is gaining currency, and the phenomenon is provoking a backlash from local communities.

Sustainable tourism requires a concerted effort in five areas, according to ADB. Sustainability is inherently a multidimensional concept and, as such, achieving sustainability requires tackling a number of different areas. These include economic growth; employment generation; environmental protection; cultural heritage, and mutual understanding and respect.

In order to achieve more sustainable tourism, there must be concrete progress in all five areas. This is why a holistic approach is required. Effective governance and policies are required for operationalizing each of the five pillars. The challenge lies in ensuring the necessary financial resources and capacity within government agencies for implementation.

Encouragingly, Asian countries are taking action to promote sustainable tourism. ADB noted, in 1996 the Cambodian government set up a dedicated authority to promote and manage the cultural heritage of Angkor Wat, and maximize benefits for communities at and near the sites.

In Fiji, the government imposes a 10 percent tax on annual gross turnovers of tourism-related businesses to fund climate change mitigation projects. And, the Indian state of Kerala set up a program which trained about 650 residents of poor and vulnerable communities for employment in local hotels.

Fiji, which has a population of about 900,000, the tourism industry employs about 119,000 people both directly and indirectly and contributes close to 40 percent to its GDP. Visitor arrivals in Fiji have steadily increased and in 2018, the island nation recorded a total of 870,309 visitors which was a 3.3 percent increase from 2017.

Fast-growing tourism is in Asia, ADB says. Leveraging tourism to promote sustainable development will require a tough balancing act between development and sustainability. Asian countries are up to the challenge and already making some headway.

Written by Lexy Nantu, Email: