Globally, tourism is the highest generator of new employment and its role will only grow in importance as rapid growth is expected to continue over the next 10 years. Tourism is also increasingly relevant for the poor—sub-Saharan Africa’s growth in international tourism outpaces the global average. Beyond this, tourism growth has a broader economic reach. It creates knock-on growth in supporting sectors such as agriculture, construction, manufacturing, retail, handicrafts, and financial services. One dollar spent in tourism generates 3.2 additional dollars of GDP; one new tourism job creates an additional 1.5 jobs in the broader economy. Tourism can be inclusive, too. It offers opportunities for women, youth, and other marginalised groups such as migrants, indigenous, and tribal peoples.
The Lab's latest policy brief synthesises the learnings in the tourism sector from seven market systems analyses, which shed light on some common themes and challenges from a wide array of contexts. Part 1 explores the workers and their challenges, Part 2 unpacks the common tourism market constraints, and Part 3 identifies key opportunities that can help development projects create more and better jobs.
The brief also provides recommendations for development projects, noting that projects should first start with a market systems analysis to understand the key challenges and their underlying causes. For tourism, it highlights that this will likely require unpacking key supporting functions like sector coordination, market information, product development, and skills development. Additionally, in developing a strategy to enhance job quality, it recommends addressing limiting constraints with a view toward creating more tourism demand (more tourists, tourists that stay longer, or both) while protecting the environment and not exceeding destination carrying capacity.
