Tourism and Green Investment Take Center Stage in Riyadh: World Tourism Day 2023

Tourism and Green Investment Take Center Stage in Riyadh: World Tourism Day 2023

By Author

Published on September 29, 2023

Riyadh, September 27, 2023 – Riyadh, the vibrant capital of Saudi Arabia, hosted World Tourism Day 2023, centred around the theme "Tourism and Green Investment." Over 500 government officials, tourism leaders, and experts from 120 countries convened to champion growth, sustainability, and global cooperation in tourism.

Minister of Tourism, Ahmed bin Aqil Al-Khateeb, delivered an impassioned speech, underlining Riyadh's pivotal role as the host. Tourism, a cornerstone of the world economy, employs one in every ten individuals globally and contributes significantly to countless livelihoods. In some countries, it makes up over 20% of GDP.

Minister Al-Khateeb illuminated the astonishing growth of the tourism sector. In 1970, tourism and global travel accounted for less than 3% of the global GDP. Today, as the sector rebounds vigorously from COVID-19, it is on track to represent 10% of the world's GDP. Passenger numbers surged from 118 million in the 1970s to a staggering 1.5 billion in 2019, marking a phenomenal 700% increase.

Cooperation emerged as a central theme. Minister Al-Khateeb emphasised the importance of nations collaborating to ensure balanced growth in tourism. By uniting regionally and globally, countries can double opportunities in the sector while fostering connections between nations and sectors.

Saudi Arabia, under the government's guidance, has embraced international investments in tourism, enabling the private sector to access global capital for world-class facilities.

World Tourism Day's expert panels explored key priorities, including education, destination diversification, innovation, and green transformation. UNWTO Secretary-General Pololikashvili and Saudi Minister of Tourism Al Khateeb announced the establishment of the Riyadh School for Tourism and Hospitality, bridging skills gaps.

The event also celebrated the winners of the Women in Tech Start-Up Competition, spotlighting women-led enterprises poised for tourism development. Under the theme "Tourism & Green Investments," UNWTO stressed the significance of investments for tourism's recovery and expansion, aligning with Sustainable Development Goals—prioritising economic growth, environmental sustainability, and inclusive prosperity.

In 2023, UNWTO's theme "Tourism and Green Investment" advocates for innovative, planet-friendly solutions that drive economic growth.World Tourism Day isn't just a celebration; it's an opportunity to spotlight tourism's transformative potential. Bali's tourism representatives led this year's event, reinforcing global commitment to advancing sustainable tourism.

Speech Excerpts from UNWTO Secretary-General Pololikashvili and UN Secretary-General António Guterres:

Zurab Pololikashvili, Secretary-General, UNWTO:

"Tourism is a pillar of our economies, offering solutions to some of our biggest challenges, including the climate emergency. It is not a force that can be taken for granted but must be supported, above all with investment. This year's theme of 'Tourism and Green Investments' couldn't be more timely. We need to make it easier for investors to support sustainable tourism projects."

António Guterres, Secretary-General, UN:

"Tourism is a powerful force for progress and mutual understanding, but it must be protected and nurtured. The climate emergency threatens many travel destinations. On this World Tourism Day, we recognize the vital need for green investments to build a tourism sector that delivers for people and the planet. We must invest in sustainable and resilient tourism practices, adopt zero-emission pathways, protect biodiversity, and empower communities."

These excerpts capture the essence of their speeches, emphasising the critical role of green investments in ensuring sustainable tourism and addressing global challenges such as climate change.


WTTC Launches 'Together in Travel' to Boost SME Growth in Tourism

WTTC Launches 'Together in Travel' to Boost SME Growth in Tourism

By Nithyakala Neelakandan

Published on October 14, 2024

The World Travel & Tourism Council (WTTC) introduced a new initiative called "Together in Travel" at its 2024 Global Summit in Perth, Australia. The initiative aims to support small and medium enterprises (SMEs) in the global Travel & Tourism sector by providing essential tools and resources to help these businesses grow and have a stronger voice on the world stage.

The platform is free to subscribe to and offers access to various educational programs, networking opportunities, and valuable content. Starting next year, WTTC will offer a paid subscription with additional features to further assist SMEs in their development.

Julia Simpson, WTTC President & CEO, highlighted the importance of SMEs in the industry, stating, "SMEs are a cornerstone of Travel & Tourism, with millions of small enterprises providing services to customers, creating innovative start-ups, and providing local knowledge to larger partners." She added that for the first time, SMEs can join a community to exchange ideas and resources to improve their businesses.

WTTC is predicting a record-breaking year for the travel and tourism industry in 2024, with the sector's global economic contribution expected to reach $11.1 trillion. Simpson also pointed out that up to 80% of the travel and tourism industry consists of SMEs, emphasizing the need for a system that can enhance their productivity and impact.

Matthew Upchurch, Vice Chair of Membership at WTTC and CEO of Virtuoso, said that the "Together in Travel" initiative marks a significant step forward in supporting SMEs. He emphasized the importance of building a more resilient and sustainable future for the travel industry, especially as it continues to recover from the effects of the global pandemic.

Ryan Mossny, Co-Founder of Matagarup Zip+Climb, shared his excitement about the initiative, saying, "As a small business, accessing the vital resources and industry connections needed to thrive in the travel sector can be challenging. WTTC’s new initiative has come at a perfect time; through tailored support, we will be able to directly tackle our problem areas head-on, allowing us not only to survive but to thrive in an increasingly competitive market."

For more information about the "Together in Travel" platform, visit their official website at www.togetherintravel.com or WTTC at www.wttc.org.


Foreign Airlines Exempt from GST on Services to Branch Offices, New Rules Effective from October 10

Foreign Airlines Exempt from GST on Services to Branch Offices, New Rules Effective from October 10

By Nishang Narayan

Published on October 13, 2024

Foreign airlines operating in India will no longer be liable to pay Goods and Services Tax (GST) on services provided by their head offices to branch offices in the country, as per a government notification issued by the Central Board of Indirect Taxes & Customs (CBIC). This decision, part of the recommendations made at the 54th GST Council meeting, will take effect starting October 10.

The exemption is subject to the condition that foreign airlines secure a certificate from the civil aviation ministry, confirming that their operations in India fall under the scope of a bilateral air services agreement. This move is expected to ease the tax burden on foreign airlines and streamline operations.

In addition to this, academic institutions that have received grants for research purposes will also be exempt from GST, further promoting research and development activities across the country.

The CBIC has rolled out several new GST-related updates, including measures aimed at reducing penalties for taxpayers. Individuals or businesses that comply by March 31, 2025, will be eligible for waivers on penalties and interest. This is particularly applicable to taxpayers facing demand orders under section 74(1) of the GST Act, as long as they have not filed an appeal.

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The GST Council has also introduced a special rectification window for taxpayers to amend past input tax credit (ITC) discrepancies. This opportunity is designed to help taxpayers correct genuine mistakes made in the past, potentially resolving many pending litigations and reducing the burden on both taxpayers and the government.

Additionally, the Travel Agents Association of India (TAAI) has raised concerns over the excessive GST charges on air ticket cancellations and modifications. The association revealed that GST was incorrectly charged at 18% instead of the appropriate rates of 5% for economy class and 12% for business class, leading to an over-collection of taxes. They have urged airlines and relevant ministries to refund the excess GST that was wrongly collected.

Experts believe that the latest measures are a step towards encouraging voluntary compliance while resolving disputes outside the court system. By offering taxpayers a chance to correct their errors and reduce penalties, the government aims to streamline tax compliance and promote a more efficient system.

This series of notifications, especially the rectification of ITC mistakes, is expected to significantly reduce taxpayer grievances and litigation, creating a more taxpayer-friendly environment moving forward.


Foreign Tourist Arrivals to Surpass Pre-Pandemic Levels by 2025: Booking.com Report

Foreign Tourist Arrivals to Surpass Pre-Pandemic Levels by 2025: Booking.com Report

By Nishang Narayan

Published on October 13, 2024

India’s tourism sector is witnessing a significant surge, with foreign tourist arrivals expected to exceed pre-pandemic levels by 2025, according to the latest "How India Travels 2024 – The Inbound Edit" report by Booking.com. The report, conducted in collaboration with Accenture, highlights India's growing appeal, underscored by its rich cultural heritage, diverse landscapes, and competitive pricing, making it one of the top destinations in South Asia.

In 2023 alone, over 9 million foreign tourists visited India, driving foreign exchange earnings (FEEs) from tourism to USD 15.3 billion in the first half of 2024. This marked a 17.6% increase from the previous year and a 5.5% jump from pre-pandemic levels in 2019. The surge in inbound tourism is not just boosting the economy but also creating substantial employment opportunities, with the potential to generate 58 million jobs by 2033.

The United States, United Kingdom, Germany, and United Arab Emirates have emerged as top inbound markets, replacing traditional frontrunners like China and Canada. In 2024, new markets like Hong Kong, Australia, Italy, and the Netherlands also made their way into the top 10. While major cities such as Delhi, Mumbai, Bengaluru, and Jaipur continue to attract the lion's share of visitors, lesser-known destinations like Hampi, Leh, Patnitop, and Khajuraho have seen year-on-year growth double, as tourists increasingly seek out off-the-beaten-path experiences.

The influx of tourists has been fueled by the ease of online bookings and greater flexibility, with 52% of visitors opting for full travel packages and 40% booking individual components separately. Online platforms are playing a key role in offering personalized travel experiences, a growing trend among foreign tourists.

Despite the positive trajectory, challenges remain. Limited customization options (49%), a lack of seamless travel packages (51%), and an overwhelming amount of information (43%) were some of the barriers identified in the report. Addressing these issues will be crucial to maintaining momentum in the inbound travel market.

As part of World Tourism Day celebrations, the Indian government has launched several initiatives to bolster the industry, including the "Chalo India" campaign, which offers 1 lakh gratis visas to foreign tourists. The Paryatan Mitra and Paryatan Didi programs have also been introduced to promote responsible tourism across 50 prominent destinations, fostering sustainability and empowering local communities.

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Looking ahead, India’s inbound tourism is poised for further growth. The report emphasizes the need for simplified visa processes, expanded international flight routes, and continued promotion of India’s diverse travel offerings. With targeted investments in infrastructure and digital resources, India is set to cement its position as a premier global travel destination.

Mugdha Sinha, Director General of Tourism, stated, “Vision 2047 for Tourism is designed to position India as a leading global destination. Through technology and data analytics, we are committed to offering travelers unparalleled experiences, from wellness to adventure tourism.”

Santosh Kumar, Country Head at Booking.com, noted, “The surge in foreign tourist arrivals demonstrates India’s rising stature as a must-visit destination, offering authentic and immersive experiences that cater to a wide variety of traveler preferences.”

Anshul Gupta, Managing Director at Accenture, added, “India’s tourism industry is undergoing a technology-driven transformation. Leveraging AI and big data, the country is well-positioned to streamline travel operations and enhance visitor experiences, reinforcing its place on the global tourism map.”

With such strong indicators, the future of India’s inbound tourism looks brighter than ever, promising further economic growth and global recognition for the nation’s unparalleled travel experiences

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