Travel and tourism leaders gather in Perth for the WTTC Summit
The 24th Global Summit of the World Travel and Tourism Council (WTTC) kicked off today in Perth, Western Australia, with an update to its ground-breaking environmental footprint data.
According to a press statement by WTTC, on the occasion of the summit, it released its latest Environmental & Social Research (ESR), that has been created in partnership with the Ministry of Tourism of Saudi Arabia. According to the report, says WTTC, in 2023 the global travel and tourism sector accounted for 6.7 pc of all Green House Gas emissions globally, down from 7.8 pc in 2019, when travel and tourism was at its peak.
The statement adds that the research showcases a important achievement with the sector’s economic contribution growing faster than its environmental impact. According to WTTC, last year, travel and tourism’s contribution to global GDP almost reached pre-pandemic levels at USD 9.9 trillion, just 4 pc short of the sector’s peak in 2019.
However, in 2023 global GHG emissions were 12 pc below the 2019 peak, with GHG intensity (emissions per unit of GDP) falling 8.4 pc during this period. This demonstrates the sector’s growth is becoming cleaner, says WTTC.
“Our sector is proving that we can grow responsibly. We are decoupling growth from emissions. Travel and tourism is expanding economically while lowering its environmental footprint. This is a defining moment, proving that innovation and sustainability go hand in hand in shaping the future of global tourism. However, while we are decoupling our sector’s growth from the increase in GHG, our aim is absolute reductions. We must accelerate this progress significantly to meet the Paris climate targets. We are on the right track, but we need to up our game,” says Julia Simpson, President & CEO, WTTC.
Julia Simpson
The statement adds that a key driver of travel and tourism’s emissions is the energy used to power its operations. Although 2023 showed positive trends compared to 2019, it is clear that there are still significant opportunities to accelerate the green transition.
The statement adds that increases in renewable energy use and reductions in fossil fuel reliance remain relatively modest, highlighting the need for more decisive action.
In 2023, the sector’s reliance on fossil fuel energy sources namely oil, coal, and natural gas, dropped to 88.2 pc from 90 pc in 2019. It adds that the share of low-carbon energy sources such as nuclear and renewables, increased from 5.1 pc in 2019 to 5.9 pc in 2023, reflecting ongoing efforts to reduce dependence on fossil fuels.
According to WTTC, the resurgence of the global travel and tourism sector is also mirrored in tax revenues that accrue to governments from the direct taxes paid by our businesses.
In 2023, total tax revenues due to travel and tourism amounted to USD 3.32 trillion or 9.6 pc of total global tax revenues. WTTC says that governments must use these additional revenues to reinvest in decarbonising infrastructure, expanding renewable energies and supporting businesses in their green transition.
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