The fDi Tourism Investment Report 2024, released by the Financial Times in collaboration with UN Tourism and supported by the Diriyah Gate Company, presents a comprehensive analysis of global greenfield investment trends in tourism. The report highlights the sector’s remarkable recovery post-pandemic while delving into emerging developments shaping its future.

The tourism sector witnessed record-breaking performance in 2023, with international tourism receipts surpassing 2019 levels by 3%. This rebound underlines the industry’s resilience and the growing appetite for international travel. Between 2019 and 2023, foreign investors announced 1,943 FDI projects in the tourism cluster, representing a capital investment of $106.7 billion and the creation of approximately 259,800 jobs. While pre-pandemic investment levels remain elusive, the report offers an optimistic outlook for the sector’s future.

The report highlights distinct regional patterns in foreign direct investment (FDI) recovery, with key insights across the globe. Europe led global tourism FDI projects, accounting for 44.6% of total global investment with 867 projects, showcasing resilience in a challenging investment climate. In the Asia-Pacific region, tourism FDI surged by 59.5% in project volume and an impressive 125.3% in capital investment from 2022 to 2023. With international arrivals reaching 65.4% of 2019 levels, the region is on a promising trajectory.

Latin America and the Caribbean attracted 221 tourism FDI projects from 2019 to 2023, amassing $20.5 billion in capital investment and creating 73,400 jobs. Surpassing 2019 international arrivals boosts investor confidence in long-term profitability. The Middle East and Africa recorded 314 FDI projects with $18.1 billion in capital investment, experiencing a 16.1% increase in project volume and a 12.2% rise in capital investment between 2022 and 2023.

The 2024 report emphasizes a paradigm shift towards sustainable tourism investments. Destinations increasingly employ cutting-edge technologies, including AI and blockchain, to reduce environmental impacts while enriching visitor experiences. The involvement of sovereign wealth funds further underscores the sector’s positive long-term outlook.

In an era of recovery, the report advocates prioritizing quality over quantity in tourism. It calls for diversified destinations to ease overtourism, eco-friendly policies to protect natural and cultural heritage, and sustainable infrastructure to future-proof the industry. This approach, rooted in sustainability and innovation, paves the way for lasting growth in global tourism.

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