AI & tech
their digital infrastructure. The UAE, notably, has issues with socioeconomic sustainably – for example, ensuring that tourism benefits the population equally. “Those with access to AI could have more opportunities,” Tussyadiah adds. “But those without might have bigger barriers to development.” Access to cutting-edge technology is hardly the only challenge to T&T. Tussyadiah explains climate and social inequality are issues it will be impacted by but also impact. “These are connected and interlinked,” she explains. “And T&T should be developed with these three crises in mind, especially when governments are thinking about resilience and agility in the sector and alternative ways of doing tourism.”
Indeed, the TTDI only exists in its current format to help inform business and political leaders about how to grow their T&T sectors in a sustainable manner. Between 2007 and 2022, the WEF compiled the TTDI’s forbear, the Travel & Tourism Competitiveness Index (TTCI) that, Tussyadiah explains, was more concerned with “competitiveness and allowed governments to benchmark [against competitors]”. Now sustainability is centre stage. “The move to the TTDI was to put greater emphasis on sustainability,” she says. “So, it looks at countries’ T&T performance from economic sustainability, as well as social and environmental.” Indeed, in the TTDI’s five dimensions, which rank how countries have infrastructure and policy set-up for tourism, there is a whole area looking at the impact on sustainability, foregrounding how countries manage demand, pollution and preservation of resources. “The index also looks into how we can use tourism to address global challenges rather than just how to increase tourism revenue… it’s about looking at how healthy are the tourism activities within that country,” Tussyadiah adds.
Flying towards excellence
Not that the TTDI ignores its competitive roots. The 2024 edition makes clear how T&T can rebound past Covid, charting what underlying conditions usually drive economic growth. Here, the TTDI shows there is a correlation between T&T sector growth post-Covid and improved air route capacity, international openness and good use of natural and cultural resources. The reasons why top-performing countries, such as the US, Spain and Japan, top the index are also explored, looking at how these countries’ positive business environments, more mature labour markets, openness and excellent T&T infrastructure as well as the use of natural and cultural resources work to boost the sector. This is all positioned to help T&T in other countries better their own practices. “We focus on pockets of excellence in the report to help governments and leaders shift their policy,” says Tussyadiah. “This blueprint means if a country is facing
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www.hmi-online.com
overcrowding in one area, or has socioeconomic inequalities due to tourism, they can understand how to spread activities or encourage a different type of tourism.” Indeed, one can see this ‘pocket of excellence’ approach in the index. For example, Paraguay, which scores moderately across the board, is very at good at driving a sustainable socioeconomic impact. Again, clearly viewable in the report. It’s this sustainability showcase that Tussyadiah wants. “It’s about looking into how tourism can contribute to the development of a country or region,” she says. “Especially in a country where economic resources are limited, and their economy is in a development phase. In fact, she argues tourism can be a driver for the economy. “It’s creating a shift about how tourism can be a sustainable development driver,” she adds. In Tussyadiah’s view, T&T can start to benefit economic and labour participation that it might otherwise be struggling with, adding that barriers to entry into the market for women, those with disabilities and disadvantaged backgrounds can often be lower. “Tourism can be a force for a more responsible labour market, more socially sustainable market,” she adds. “Many in this space operate as SMEs which can help drive local benefits.”
From Davos to decisions
Much like the leaders on stage at Davos contending with their own big-ticket issues, leaders concerned with T&T will have their own challenges to front up to. Not least squaring air travel with environmental responsibility and low sector pay with access to tourism jobs. All the while growing the sector to pre-pandemic levels. But Tussyadiah sees that the pandemic dip, while damaging, allowed for a period of reflection about how T&T might re-emerge into the future. “We had time to think about alternative ways of operating in this space,” she says. “It’s an opportunity for governments and businesses to look into more positively impactful ways of operating.” It is this view that has informed the latest form of T&T index: balancing factors that might enable good business with sustainability metrics. Of course, in the age of AI, T&T might be upended again, much like in the pandemic, but it is Tussyadiah’s view that technology can be a force for good as long as it is managed in the right way. “I’m a strong believer that technology is there for us to leverage – but that means we don’t always have to use it,” she says. “It means making decisions in an increasingly AI-driven world but with a human edge.”
If this comes to pass, perhaps even the operational preparations for the logistically complex Davos might come to be augmented by AI. Until then, however, it’s back to asking Google where the best beachside hotel is. ●
97%
Countries have shown positive momentum in ICT readiness.
TTDI 15
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