Meeting these challenges would require massive government spending, conversion of existing industries to wartime production, construction of huge new factories, changes in consumption, and restrictions on many aspects of American life. Government, industry, and labor would need to cooperate. Contributions from all Americans, young and old, men and women, would be necessary to build up what President Roosevelt called the "Arsenal of Democracy."
An industry's value added is the market value it adds in production, or the difference between the price at which it sells its products and the cost of the inputs it purchases from other industries. For example, when a baker makes and sells a birthday cake, the baker's value added is the market price of the cake minus the cost of the eggs and other inputs that the baker uses. The baker's work making and selling the cake counts as part of the manufacturing industry's contribution to GDP while the farmer's production of eggs is part of the farming industry's contribution to GDP. Value added for all U.S. industries combined is equal to the nation's GDP.
Tourism Industry (Closer Look: Global Industries)
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Special TopicsBEA zooms in for a closer look at some industries, such as arts and culture, health care, travel and tourism, outdoor recreation, and the digital economy. To learn about these, see the Special Topics learning page.
With this report Skift Research completes its effort to size the global accommodation industry by adding the estimates of the African, Middle Eastern and American (excl. U.S.) accommodation industry to the U.S., Europe and Asia Pacific estimates published earlier this year.
The fastest growing segment of accommodations globally has been short-term rentals. The sector is estimated to have grown at a compounded growth rate (CAGR) of 10 percent between 2018-2022 while the hotels sector shows a negative CAGR (-1 percent) for the same time period. However, STRs still represent a very small section of the accommodation industry. As per our estimates, the share of STRs in the accommodation industry has increased from 10 percent in 2018 to 14 percent in 2022.
Pilots wanted. Still, industry analysts project that North American airlines will need to hire 130,000 new pilots over the next 20 years, and that the global industry could confront a shortfall of 50,000 pilots by 2025. In the US specifically, airlines may need to transform their approach to recruiting new pilots by supporting their education and certification. The current crisis also offers a prime opportunity for launching effective initiatives to diversify the cockpit. In the short term, pilots are demanding big raises and measures to improve the quality of their work life.
Ultimately, full recovery for the airline industry is a question of when, not if. The long-term growth outlook for commercial passenger aviation is bullish. Approximately 82% of the global population has never flown. Access to business and leisure air travel remains an essential part of middle-class life. And the global middle class is projected to grow by up to 80% and reach some 5.3 billion people or more by 2030. Developing countries will likely lead the way.
The accommodation industry includes businesses that provide overnight and short-term lodging for travelers. It plays a significant role in our economy by supporting tourism and hosting meetings and events. The sharp reduction in travel caused by the pandemic has forced many businesses in the accommodation industry to consider taking drastic steps to stay above water.
Universities and industry collaborations are on the rise. According to a news blog item from Nature Index, academic-industry collaborations more than doubled between 2012 and 2016. The chart below shows that, according to Scopus, the global number of papers co-authored by a research institution and an industry partner is on a steady rise.
In "Why two heads are better than one: the power of university-industry collaborations," a recent episode of the Research 2030 podcast, Dr. Tony Boccanfuso, President of UIDP (University-Industry Demonstration Partnership), notes that, in the United States, the government's role has been relatively hands-off, but that trend is changing globally.
Dr. Mary Juhas, Associate Vice President, Office of Research, The Ohio State University, Leader of Ohio State ADVANCE, participated in the panel, "Will universities reimagine collaboration with global companies after COVID-19?" at the 2020 Times Higher Education World Academic Summit. She referenced how the industry-university cooperative research program (IUCRC) run by the National Science Foundation (NSF) in the US has effectively catalyzed these kinds of collaborations.
In the tourism and hospitality industry, and in global business, many minds work to decipher industry trends in order to keep informed and make smart decisions. One example is the Global Competitiveness Report 2019, a product of the World Economic Forum.
In contrast, trends influence things for long periods of time, potentially shifting the focus or direction of industry and society in a completely different direction. For example, the growing awareness of tourism impacts seems to be a long-term trend, leading to greater focus on developing sustainable experiences, products, and services for the mindful traveller. With hindsight, we can identify the trends versus the fads. Predicting the future, however, is not as easy.
While we may be intrigued by global issues and their macro implications on the world in which we live, we also need to pay attention to local politics and policies. The world is currently challenged by growing populist movements, power conflicts and protectionist measures (Ipsos, 2020). Within this climate however, support for globalization is increasing, public services are improving (generally), and living standards are rising. The complexity of the political landscape is intensifying, making it that much more important for industry players to carefully monitor global conditions.
As more countries and regions around the world become more dependent on tourism for revenue generation and employment, competitiveness has become a major focus (see Trends Reports, World Economic Forum, 2019). Traditional Western destinations are under pressure to formulate policies, and create strategies and spending patterns that will enable them to compete with emerging destinations. Often, these national policies are impacted or governed by formal international agreements, affecting everything from the movement of people (visas and passports) to the flow of goods and services. International organizations such as the World Trade Organization (WTO), European Union (EU), Organization for Economic Co-operation and Development (OECD) and Asia-Pacific Economic Cooperation (APEC) influence how the tourism and hospitality industry operates around the world.
Many aspects of the tourism and hospitality industry are governed by international agreements and policies. The International Civil Aviation Organization (ICAO) was created in 1944 with the signing of the Chicago Convention as a specialized agency of the United Nations. It works with 193 member countries and industry groups to help develop aviation policies and build capacity in countries with underdeveloped air industries. For more information, visit the International Civil Aviation Organization website.
In 2016, the world experienced two major political acts that shook the international order. The British vote to leave the European Union and the election of Donald Trump in the United States were not the cause of populist nationalism. However, they were two very visible indicators about the extent of its rise around the world. It seemed that the global consensus that globalization was a positive force for international cooperation was being replaced by an emphasis on national sovereignty. Tribalism is winning hearts and minds. This increase in barriers to trade and cross-border movement has implications for many aspects of the tourism and hospitality industry (CreditSuisse, 2018, Ipsos, 2020).
Economic uncertainties for the tourism industry have persisted, however, leading many industry insiders to monitor several economic trends, including collaborative consumption, shifts in emerging economies, and conscious consumerism.
With this growth came travellers looking for new destinations to visit. Outbound tourism development from China has been especially energetic, with numbers increasing from 58 million in 2010 to over 160 million in 2018 (Statista, 2020). But all has not gone well for these emerging economies and only China has maintained the pace of expansion. Other countries have joined the race, creating new terms such as MINT (Mexico, Indonesia, Nigeria, and Turkey) and Next Eleven (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, South Korea, Turkey, and Vietnam). Time will tell where new tourism growth and opportunities arise in the frenetic global economy, and who will be the next powerhouse to watch.
Conscious consumerism, or socially conscious consumer behaviour, is another economic trend with implications for the tourism industry. This term refers to consumers who are using their purchasing power to shape the world according to their values and beliefs, leading organizations to project a more ethical or responsible image (Government of Canada, 2012). Conscious consumers look for positive outcomes with what they buy and/or seek ways to minimize or eliminate the negative effects of consumerism.
Visiting friends and relatives, known in the industry simply as VFR, is a common and important subset of tourism demand worldwide. With their busy lives, people are seeking a moment, place, and activity to share with family or friends. In addition to the growing VFR trend is the increasing popularity of group travel, as exemplified in the sports tourism sector (see Chapter 6 on entertainment) with sports clubs and teams who travel together, and associations that bring together people with shared interests in cuisine, walking, birdwatching, or other avocations. 2ff7e9595c
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