Tourism (2024)

Prior to the COVID-19 pandemic, tourism had for decades been one of the fastest-growing industries. While the number of international tourist arrivals in 1950 was only 25 million, it had risen to 674 million by 2000 and to 1.5 billion by 2019. Domestic tourism has also become more and more important.

As the number of tourists has grown, so has the economic significance of tourism. In 2019, tourism accounted for about ten per cent of global GDP (gross domestic product). One in ten jobs worldwide is directly related to tourism.

Over the past few decades, the importance of tourist destinations in the Global South has risen continuously as well. While in 1995 the share of international arrivals in developing countries and emerging economies was only 26 per cent, it was already as much as 38 per cent by 2010. More than half of all Germans (52 per cent) have already visited an emerging or developing country.

Tourism can contribute to sustainable development in a variety of sectors.

Economic growth. Tourism generates income and creates easily accessible training opportunities and jobs, as well as sales markets for services and local products.

Infrastructure. Revenue from tourism can be used to expand important transport, energy and other infrastructure, and for waste and wastewater management, for example.

Environmental protection and nature conservation. Tourism companies and local communities get involved in environmental protection once they realise that this will help preserve the basis for tourism.

Culture. Travelers are interested in local cultures. So tourism can contribute, among other things, towards protecting and reviving the cultural heritage and increasing the value which people attach to it.

Uncontrolled growth of the tourism sector gives rise to a number of risks.

Environment. Uncontrolled growth of the tourism sector puts a strain on natural resources, for example through greatly increased demand for water and energy, increased volumes of waste, and damage to – or even the destruction of – ecosystems.

Human rights. If local people's right to have a say in local affairs is disregarded, or if social standards are not met, the development of tourism can lead to conflicts within the society of the destination country. For example, most workers in the tourism industry, especially women, have informal jobs with very limited career advancement opportunities. Tourism development can also lead to increased sexual exploitation of women and children, and increased child labour.

Economy. Economies that rely one-sidedly on tourism can become economically dependent on that single industry. Seasonal fluctuation of tourist flows can lead to insecure job and income situations.

Crowding-out effect. The construction of tourism infrastructure and the increase of prices in a given region as a result of tourism can crowd out local people from their home areas or local labour and other markets.