Everything you need to know about the expansion of the tourism sector
While this sector contributes significantly to global GDP, it has suffered severely from the impacts of the pandemic. However, the expansion of tourism is something that has brought refreshment to the world stage.
With the resumption of basic social activities, there was an increase in spending on this sector. This can be seen in a study done by Statista, globally, the direct contribution of travel and tourism to GDP was approximately 5.8 billion dollars in 2021.
Regarding the national scenario, the National Confederation of Commerce in Goods, Services and Tourism (CNC) revised the annual growth of this sector upwards, and projected growth of 2.8% by the end of 2022.
The tourism industry encompasses many sectors - such as travel, accommodation, attractions, transportation and companies - making it difficult to define it in a single product. And because it doesn't have just one product, the profile of growth possibilities and that of its consumers becomes vast.
In this article, you will understand how this sector resumed, you will see the importance of this segment for the global economy and the advantages, or not, of undertaking in this segment.
Travel and tourism: the sector's recovery
The post-pandemic recovery of the global travel and tourism sector has been successful due to the change in the social needs of its consumers and the adaptation of this sector to technological trends.
With the period of great social restrictions, the population rekindled the need to live new experiences and to travel. However, in addition to these behavioral changes, travelers, inspired by Covid-19, became increasingly aware of their environmental and social role.
Based on the profile of these travelers, Statista provides data that show how important it is for the sector to be aware of the behavioral changes of its audience. Today, around 78% of travelers believe that sustainability is important when choosing a service, itinerary, and travel location.
Sustainability in tourism aims to reduce their negative impact on the local environmental and cultural environment. In a way, it is considered an ethical practice in this sector, coming close to the characteristics of responsible tourism and ecotourism.
This type of tourism is about efficient technology, cleaner production, environmental protection, and community engagement. Therefore, it is of extreme advantage for the sector, and in addition, it provides another aspect of income movement for all those involved.
With this adaptation to consumer needs, after the recession, the sector began to implement new technologies to provide better conditions and experiences for travelers, making tourism more inclusive, sustainable and resilient.
In 2021, after a year of low revenues, the sector began to reap the benefits of these changes and adaptations:
With the increase in the contribution to global GDP, the sector has brought refreshment to several states, countries, and continents. There are still countries that rely exclusively on tourism as a local driving force, and this significant increase demonstrates how fast the sector has recovered, even with so many changes taking place.
The way many of us live and work changed because of the pandemic, and the way we travel changed as well. New travel categories and new ways of traveling have emerged, and today virtual tourism is already a reality.
Technologically, some implementations were extremely important for the sector. Aiming at the convenience of travelers, the facilitation of the documentation process, check-in, check-out, tickets, etc., contributed to greater adherence among travelers.
These processes can currently be done online, through websites, electronic signature, and of accommodation platforms. However, in order for there to be no problems with information, it is necessary for the traveler to know how each service maintains the data protection of your documents and your information.
The importance of the sector in the world economy:
Tourism is not just a definition of holidays, it goes far beyond that, it energizes the economy, generates employment and income, generates taxes and boosts the development of territories. It can be said that tourism is of interest to economies and public sectors, as it helps to move capital.
This industry is broad, it supports everything from local companies to contribute trillions of dollars to global GDP. Therefore, the importance of tourism is enormous for all economies.
This segment is constantly growing, it is an expanding industry, and it is also a commercial activity, since the entire tourism process involves the consumption of services and products. In this way, making tourists important players, as they become engines of growth.
The importance of tourists and the importance of their role for economies and countries is well known. This can be supported by research done by the World Travel and Tourism Council (WTTC), which shows that in 2020, the Travel and Tourism sector contributed, despite a decrease due to restrictions, with 5.3% to global GDP and in 2021, participation increased to 6.1%.
This growth is evident on a global scale, but when it comes to Latin America, there are several types of benefits provided by this. As an example, the creation of 5.5 million new jobs in this region.
“With the global health crisis, the travel and tourism sector in Latin America was seriously affected. However, as the global economy begins to recover from the devastating effects of the pandemic, the jobs generated by the tourism sector begin to increase.” - Julia Simpson, president and CEO of the WTTC
Also according to the WTTC report, in 2021 the contribution of the travel and tourism sector to Latin America's GDP represented 6.1% (213.4 billion dollars), which meant a growth of 26.5% compared to the previous year. Making the region stand out globally in this sector.
In view of this, the growth of this sector is directly related to the monetary movement of the regions and to the projection of this amount in social and territorial development.
The rise of Airbnb in Brazil: is entrepreneurship in tourism worth it?
With the technological implementation in this sector, it led to the creation of rental marketplaces around the world, an example of which is Airbnb.
Airbnb began operations in 2008, but it was in the post-pandemic period that this marketplace experienced a significant change in the profile of its hosts and in the demand for its services. Today, the app has a 50% growth in new hosts in Brazil.
Based on the Brazilian behavioral profile, Airbnb conducted a survey that showed that about 60% of hosts in Brazil said that the income earned when making their properties available on the platform in 2021 helped them to remain in their homes in 2021. In other words, Brazilians are using this marketplace as a way of doing business.
Due to the inflation that is stagnant in the country, the forms of entrepreneurship have been welcomed by the population. This is a great income generation, justified by Airbnb's ability to scale its services through its room count, which is unmatched when compared to the hotel industry.
Also according to the Airbnb report, in 2021 the Brazilian host earned 33% more than in 2019. Globally, new hosts earned a combined total of over US$ 1.8 billion, more than 30% compared to 2019.
This growth is not only felt in Brazil, according to Statista Airbnb's global revenue grew significantly over the past two years:
Starting a new business is dealing with market uncertainties. In the case of Airbnb, there was no way to predict the restrictions of the pandemic period and this caused some losses. However, if you want to undertake this sector, you must take into account inflation and the costs of this investment.
In short, when we talk about this sector there are several aspects to be analyzed. And to keep up with the expansion of tourism, it is necessary to be aware of market and behavioral changes.
In recent years, the sector has undergone significant changes, which generated an increase in demand for the service and in the population's quest to undertake in this sector.
It can be said that, currently, it is a prosperous sector for companies, investors and consumers, since it is an industry that actively contributes to global GDP growth.
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