Navigating challenges: Turning obstacles into opportunities3 There are also challenges pertaining to destination management and managing tourist numbers, skill gaps, cybersecurity and data privacy, geopolitical and economic instability, increased impact of climate change, visa processes, innovation in virtual and hybrid experiences, and global health crises. However, these can be leveraged for innovation and positive change. Addressing these challenges can help the industry emerge stronger, and better equipped to be a driver for sustainable growth of companies, destinations and communities. The challenge of managing tourists in certain locations (e.g. Barcelona and Venice) affected by tourism related excesses – i.e. “touristification”, overcrowding and overtourism – present an opportunity to develop alternative tourism models and approaches such as dispersing tourists to outside hotspots and promoting lesser-known destinations, which is commonly seen as a means of dealing with high number of tourists. However, whether sufficient interest is stimulated to go off the beaten track is to be seen and could simply result in the problem shifting elsewhere. Demarketing of destinations has been applied with varying degrees of success. Introducing entry fees to popular locations and applying tools such as dynamic pricing and mechanisms for visitor management (see case study 3) have helped distribute tourist flows across time and space. The solutions to dealing adequately with the effects of a large number of tourists are likely to be many and varied, and should be tailored by destination through multistakeholder collaboration.36 CASE STUDY 3 Machu Picchu tourism management Machu Picchu in Peru is one of the New 7 Wonders of the World and a UNESCO World Heritage Site since 1983. However, in 2008 the World Monuments Fund placed the site on its list of most endangered sites. Ever since, measures have been introduced to ensure the site can be enjoyed by future generations. These include timed entries, late entry tolerance, designated circuits, and a cap on the number of visitors per day. These efforts have been mainly focused on preserving cultural heritage and managing tourism flows, but have brought other benefits: –Machu Picchu has become key to Peru’s economy, creating countless jobs and bringing an estimated $40 million per year in fees alone. –Travellers are more aware and enthusiastic to support local projects to improve access to education, healthcare, etc. –Additional resources are available to protect the over 30,000 hectares of forest close to the historic sanctuary. Source: Big Think;37 Responsible Travel;38 Sky News;39 UNESCO Future of Travel and Tourism: Embracing Sustainable and Inclusive Growth 10

Future of Travel and Tourism 2025