Following the recently concluded COP28 Summit in Dubai that advanced the climate action strategies for tourism, Euromonitor International has released its annual Top 100 City Destinations Index 2023 that ranks top global cities delivering on tourism, sustainability and economic performance. French capital Paris retains top spot, followed by United Arab Emirates’ Dubai and Spanish city of Madrid respectively.

Paris has retained the title of the world’s most attractive city destination. Dubai in the United Arab Emirates and Spanish capital Madrid make up the top three, according to global market research firm Euromonitor International’s annual Top 100 City Destinations Index 2023.

Japanese capital Tokyo came in fourth, while Amsterdam in the Netherlands rounded up the top five. Germany’s Berlin, Italian capital Rome, New Yorkin the United States of America, Barcelona in Spain and United Kingdom capital London make up the top 10.

In a press statement, Euromonitor International says its report Top 100 City Destinations Index 2023 compares 55 metrics across six key pillars for 100 city destinations, to create an overall city attractiveness score. The six key pillars include economic and business performance, tourism performance, tourism infrastructure, tourism policy and attractiveness, health and safety, and sustainability.

The report says that Asia saw strong representation in the rest of the top 20 as Singapore was ranked 11, South Korean capital Seoul at 14th, Japan’s Osaka at 16th and Hong Kong at 17th.

Euromonitor says that Tokyo has entered the top 10 for the first time thanks to improved developments in tourism infrastructure. The report says that in addition to the easing of pandemic-related regulations, the continued weakening of the Japanese Yen since 2022 has attracted tourists to the city, boosting hotel occupancy, to enjoy consumer experiences at very low prices.

According to the analysis, international travel has continued to make a strong recovery in 2023 with 38 pc growth in terms of number of trips, projected to reach 1.3 billion by the end of the year.

It says that European destinations command the index with 12 cities in the top 20 and 63 in the top 100. This is driven by fast-paced urbanisation and widespread technology adoption.

This year showcases four newcomers to the top 100 City Destinations list, US-capital Washington DC at 48th, Canadian city Montreal at 68th, Chilian-capital Santiago at 88th and Lithuanian capital Vilnius at 92nd, owing to their improved tourism performance.

The report highlights that developed markets continue to seize control of the rankings with most of the leading cities in the Index for 2023.

“Paris has retained the title of the world’s leading city following exceptional performance across the Tourism Policy and Attractiveness, Tourism Infrastructure and Tourism Performance pillars,” says Nadejda Popova, Senior Manager (Loyalty) at Euromonitor International.

International travel makes a strong recovery in 2023 

The report adds that an important milestone for the recovery of the industry in 2023 has been the return of Chinese international travel, following the removal of the governmental quarantine. Global tourism spending is set to reach USD 1.7 trillion in 2023, says Euromonitor.

“Rising cost of living, which triggers lower consumer confidence and fluctuating inflation are expected to be the biggest challenges for the growth of the industry in 2024 and 2025, especially if global recession unveils. Geopolitical volatility represents another risk for the travel industry. Consumers are expected to look for value for money travel propositions when booking travel. This, in turn, will drive consumer demand for intraregional travel, especially as travel purchases are frequently discretionary. Travellers will continue to favour authentic and local experiences in addition to sustainable tourism alternatives,” says Popova.

Istanbul tops the list for the number of International arrivals in 2023 with 26 pc growth year-on year followed by London in second place, up 17 pc and Dubai in third, up 18 pc.

The report adds that Hong Kong at 2495 pc and Bangkok in Thailand at 142 pc saw the biggest year-on-year growth in international arrivals as they were among the last to reopen after the pandemic.

As far as traveller sentiments are concerned, they now seek providers that offer high-speed internet, flexible booking options and comfortable work environments to accommodate remote working. Building a strong digital transformation with the help of disruptive technology, improving sustainability, transportation networks and social impact are some of the key goals cities are embracing today to increase competitiveness, improve their tourism offer and deliver a seamless customer journey, adds the statement.

“Sustainable tourism remains a prominent and evolving topic for global cities. Destinations are taking various steps to enhance their sustainability practices such as harnessing renewable energy sources, green construction, launching recycling programmes, or investing in emission-free transportation,” says Popova.

Overtourism is a challenge facing cities

“Overtourism is one of the challenges cities are facing, impacting local communities and the environment as tourism rebounds from the Covid-19 crisis. Seen by many as a double-edged sword, overtourism underscores the importance of implementing sustainable practices to help drive more responsible tourism over mass travel to benefit the environment as well as local residents. Some destinations are imposing restrictions, steep taxation or reduction of hotel capacity to help limit the influx of tourists and preserve cultural heritage, while others embrace dispersion strategies that promote alternative or off-the-beaten-path destinations,” adds Popova.