Greenfield Tourism Investments Reflect Resilience, Sustainability in 2024

Global greenfield investments in tourism are on the rise, with a clear focus on sustainability and innovation, according to the fDi Tourism Investment Report 2024. Released by the Financial Times in collaboration with UN Tourism and Diriyah Gate Company, the report highlights a strong recovery from the pandemic and the ongoing transformation of the tourism sector.

From 2019 to 2023, foreign investors announced 1,943 tourism-related projects, injecting $106.7 billion in capital and creating over 259,800 jobs. While investment levels have yet to fully return to pre-pandemic peaks, international tourism receipts in 2023 surpassed 2019 figures by 3%, reflecting the sector’s resilience and potential.

Regional Trends

• Europe led with 867 projects (44.6% of the global total), showcasing robust recovery and steady investor confidence.
• Asia-Pacific saw remarkable growth, with FDI projects rising by 59.5% in 2023 compared to the previous year and capital investments surging by 125.3%.
• Latin America and the Caribbean attracted 221 projects, generating $20.5 billion in investment and 73,400 jobs, buoyed by surpassing pre-pandemic tourist arrival levels.
• Middle East and Africa recorded a 16.1% increase in projects between 2022 and 2023, totaling $18.1 billion in capital investment and 40,700 jobs created.

Sustainability and Innovation
The report highlights a growing emphasis on eco-friendly tourism projects, leveraging AI, blockchain, and sustainable infrastructure to minimize environmental impact while enhancing experiences. Sovereign wealth funds are increasingly engaged, reflecting confidence in the sector’s long-term profitability.

Call for Sustainable Growth
Experts stress the need for quality over quantity in tourism development. The diversification of destinations, adoption of green policies, and investment in eco-friendly infrastructure are deemed critical to ensuring the industry's sustainable growth.

UN Tourism Secretary-General Zurab Pololikashvili noted the dual challenges and opportunities presented by sustainability and technology. Natalia Bayona, UN Tourism Executive Director, emphasized the importance of investing in younger generations and innovation, highlighting that over 50% of the global tourism workforce is under 25.

As climate change reshapes global travel patterns, the report underscores that strategic, sustainable investments are vital for the sector’s future resilience and positive impact on communities and the planet.