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The global tourism industry is undergoing a transformative shift in its approach to destination management. Arising from the need to address evolving priorities and external challenges—many of which were exacerbated by the COVID-19 pandemic, the movement from destination marketing to destination management, and now destination stewardship is underway.
6 Challenges Faced by the Tourism Industry
To better understand how tourism organizations can make this shift toward destination stewardship and increase destination resiliency in the wake of global disruptions, it’s essential that we understand the critical challenges shaping the industry.
Climate Change & Environmental Sustainability
From extreme weather events to ongoing traveler demands around environmental sustainability, the tourism industry must address climate change both as a contributor to and receiver of its effects. The impacts of climate change, including rising sea levels, hurricanes, flooding and wildfires, pose a critical threat to the natural landscapes and local communities that attract visitors to a destination while also having the potential to disrupt travel plans.
Furthermore, while there is a continued importance put on sustainable travel, consumer sentiment may be waning when it comes to making sustainable travel choices. Research from Booking.com reveals that 44% of travelers surveyed believe governments have the most potential to counter the economic impacts of travel, and 43% think travel service providers hold the key to addressing environmental factors. These findings emphasize the need for increased collaboration and shared responsibility between public and private sectors to make sustainable travel choices easier, along with the continued efforts to create lasting, positive impacts for destination communities—undeterred by traveler sentiment.
Overtourism
In today’s world, overtourism is anything but new. However, popular destinations across the world continue to grapple with the effects of overcrowding such as the degradation of both the environment and culturally significant sites, strain on infrastructure and natural resources, and diminished resident quality of life. To preserve the integrity and unique point of difference of these destinations, striking a balance between resident and visitor needs across destination decision-making is vital.
Workforce Development
The tourism workforce is responsible for creating memorable visitor experiences across lodging, food and beverage, retail, attractions, entertainment, destination management and other sectors. However, the industry’s ongoing talent shortages have only been heightened by the pandemic. Based on a survey of 474 hoteliers by the American Hotel & Lodging Association, more than 80% of hotels reported staffing shortages, 26% of which experienced an impact on their ability to operate. These shortages felt throughout the industry highlight the importance of workforce development and prioritizing initiatives that cultivate a skilled, engaged and diverse tourism workforce.
Diversity, Equity, Inclusion & Accessibility
Demands for diversity, equity, inclusion and accessibility (DEIA) within the tourism industry are requiring tourism organizations to take an inclusive approach to decision-making across all verticals. Fostering a sense of belonging requires engaging with the community to ensure that stakeholders from diverse and marginalized groups are included in destination planning. Promoting DEIA not only strengthens destination communities but enhances the visitor experience by offering a more representative, inclusive and authentic tourism experience.
Global Economy
The state of the global economy can have a significant impact on travel demand and spend and consequently, the destinations and stakeholders who rely on tourism’s economic benefits. While the global economy is headed in an upward direction, with travel and tourism contributing 9.1% to the global GDP in 2023—only 4.1% below pre-pandemic levels, the industry is still encountering the challenges associated with inflation and higher costs of travel. According to research from the State of the American Traveler, nearly three quarters of travelers agree that affordability is one of the most important factors impacting how they choose their travel destinations. To ensure the holistic and long-term well-being of a destination and its communities, tourism organizations must reenvision the visitor economy.
Global Uncertainties
Global uncertainties such as health crises, international conflicts and geopolitical instability also have an impact on the tourism industry, with the possibility of disrupting and negatively impacting travel to affected regions. On the other hand, positive international relations and political stability can promote and influence inbound tourism to a destination. Acknowledging and understanding how these types of external factors can have long-term effects on the tourism industry can lead to improved destination preparedness and resiliency.
Creating a More Resilient Tourism Industry
So how can today’s stakeholders tackle some of the tourism industry’s most pressing challenges? We have the opportunity to leverage tourism’s far-reaching effects across economic, social, cultural and environmental facets to create positive and lasting change that goes beyond destination marketing and management. By transitioning to a destination stewardship approach tourism organizations can prepare for the challenges and uncertainties of the future.
Defining Destination Stewardship
Defined as the continuous pursuit of a net positive tourism ecosystem that exists in alignment with shared community values, destination stewardship emphasizes a community-centered approach to decision-making to ensure the responsible management and preservation of a destination’s natural, historical, cultural and social assets—and ultimately, to create more vibrant and flourishing communities.
A Best-Practice Destination Management Framework
Successful destination stewardship initiatives can be approached through the Wayfinder’s best-practice destination management framework. Developed in collaboration with tourism industry trailblazers, the framework breaks down stewardship into nine core modules which destinations can then prioritize and create action plans against—measuring, monitoring and improving their stewardship capabilities and strategic outcomes.
Regardless of where you’re at on your stewardship journey, the Wayfinder allows destination organizations to prioritize the areas that matter most to their community and its visitors, whether that be stakeholder engagement, social well-being, or resiliency, risk and crisis management.
Learn more about destination stewardship by reading our white paper or schedule a demo to see how the Wayfinder can support your destination’s strategic goals.