APEC member economies’ tourism sector challenges and innovative approaches (Part 1)

by Ricky Rillera

Sun, surf, and sand – the promise of a perfect Boracay holiday in Aklan. In 2016, Conde Nast Traveler voted Boracay the world’s best island; in 2019, it was also Asia’s best island. | Photo courtesy of the Department of Tourism

NEW YORK –The APEC 12th Tourism Ministers met in Urubamba, Cusco, Peru, on June 9th, 2024, under the theme “Innovating Pathways for Sustainable Tourism Growth.” The meeting aimed at member economies to acknowledge and endorse the progress made under the APEC Tourism Working Group (TWG) Strategic Plan 2020-2024 and determine directions for APEC tourism cooperation.

Their discussions resulted in a statement emphasizing the need for innovative approaches to address challenges in the tourism sector. Here are the key points:

Formalization and Sustainability: They highlighted the benefits of formalizing businesses in the tourism industry, including job creation, market access, and improved service quality. They also emphasized sustainability and resilience.
Role of Innovation and Digitalization: The ministers recognized the role of innovation, digitalization, and an enabling business environment in supporting the transition of tourism enterprises into the formal economy. These advancements enhance competitiveness and sustainability.
Inclusive Access to Technology: They encouraged economies to accelerate digital transformation, ensuring inclusive access to advancements in digital technologies. Bridging digital divides is crucial for sustainable tourism growth.

Overall, the APEC ministers aimed to empower all stakeholders, including MSMEs, women, Indigenous Peoples, and those from remote communities, to realize the economic potential of sustainable tourism.

  1. How does tourism in APEC economies face specific challenges?

Tourism in APEC economies faces several challenges, including:

Price Increases and Inflation Pressures: The changing face of tourism includes rising prices and inflation, impacting affordability for travelers.
Extreme Weather Events: Climate change leads to extreme weather conditions, affecting travel patterns and destinations.
Labor Shortages: The industry grapples with workforce shortages, impacting service quality and operations.
Infrastructure Strain: Pent-up demand strains existing infrastructure, such as transportation, accommodation, and attractions.
Transition to Formal Economy: Informal stakeholders need support to transition into the formal economy, emphasizing innovation and digital tools.
Sustainable Supply Chains: Ensuring resilient and sustainable tourism supply chains is crucial.
Food Loss and Waste Reduction: Efforts to reduce food loss and waste contribute to sustainability.

Despite these challenges, APEC economies aim to empower, include, and grow the tourism sector, realizing its full economic potential.

Parasailing presents a thrilling adventure with a fantastic view of the wide beaches and surrounding foliage. | Photo courtesy of the Department of Tourism

2. How can APEC economies address these challenges?

APEC economies can address these tourism challenges through collaborative efforts and strategic measures:

Price Stabilization: Implement policies to manage price increases and inflation, ensuring affordability for travelers.
Climate Resilience: Invest in climate adaptation and disaster risk reduction to mitigate the impact of extreme weather events on tourism.
Skills Development: Address labor shortages by promoting tourism-related training programs and workforce development.
Infrastructure Investment: Expand and upgrade transportation, accommodation, and attraction infrastructure to accommodate growing demand.
Formalization Support: Leverage innovation and digital tools to incentivize and support informal stakeholders to transition into the formal economy.
Sustainable Practices: Encourage sustainable supply chains, waste reduction, and responsible tourism practices.
Collaboration: Foster collaboration among APEC economies, sharing best practices and lessons learned.

By adopting these strategies, APEC can promote sustainable and resilient tourism growth.

3. How can technology contribute to sustainable tourism?

Technology plays a crucial role in advancing sustainable tourism. Here are some ways it contributes:

Pre-Trip Planning Using Technology: Travelers can access information about eco-friendly accommodations, local experiences, and responsible activities. Apps and websites provide insights into sustainable options.
Sustainable Accommodations and Transportation: Technology enables booking eco-friendly hotels, resorts, and transportation services. It promotes energy-efficient practices and reduces environmental impact.
QR Codes for Sustainable Tourism: QR codes on tourist attractions provide real-time information about conservation efforts, cultural significance, and responsible behavior, enhancing visitor awareness and engagement.
Digital Innovation for Cultural Preservation: Virtual reality (VR) and augmented reality (AR) allow tourists to explore historical sites without physical impact. Digitization preserves cultural heritage while minimizing foot traffic.
Environmental Conservation with Tech: Drones monitor wildlife, track deforestation, and assess natural habitats. Intelligent sensors help manage water and energy usage in hotels and attractions.
Community Engagement and Local Economies: Technology connects travelers with local communities. Apps promote authentic experiences, support local businesses, and empower communities.
Ethical Travel Behavior and Responsible Tourism Practices: Social media campaigns raise awareness about responsible travel. Travelers share tips, promote eco-friendly choices, and advocate for conservation.
Future Trends and Challenges in Sustainable Travel Tech: Innovations like blockchain for transparent supply chains, AI-driven sustainability assessments, and carbon offset calculators will shape the future of sustainable tourism.

Integrating technology can create a more responsible and immersive travel experience that aligns with environmental values and cultural respect. (TO BE CONTINUED)

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