2023.11.22
In the early winter splendor of Hangzhou’s Xianghu, where nature bursts with vitality and colors, the World Tourism Alliance (WTA) hosted its annual industry event. The “WTA • Xianghu Dialogue 2023”, held on November 15-16, convened global tourism experts under the theme “The Power of Travel and Tourism—Towards a Better Future”.
The conference focused on cooperation, transformation, co-creation, sharing, empowerment, and momentum, analyzing the development, challenges, and pathways of the tourism industry. It aimed to consolidate confidence in tourism development and gather infinite wisdom and strength for a better future.
“Changes” and “Constancy”: Understanding the Global Tourism Development Trend
In a world marked by complex international dynamics and challenges, the global tourism industry faces a pivotal moment. Experts at the dialogue emphasized the need to grasp the “timing” and “trends” in global tourism, pushing for a sustained recovery and prosperity.
—— Amid intensifying major-power competition, geopolitical conflicts, and a surge in anti-globalization sentiments, the pursuit of “cooperation” remains a constant trend in the tourism sector.
“This is the dawn of a new era”, said Mr. Eduardo SANTANDER, WTA Vice Chair, and Executive Director of the European Travel Commission (ETC). He described the Europe-China relationship as “natural”, destined to start naturally and grow naturally, fostering innovative and cooperative opportunities in tourism through initiatives like “Hello, China!”.
Mr. Antonio LÓPEZ DE ÁVILA, Global Manager of the Tourism for Rural Development Program at the United Nations World Tourism Organization (UNWTO), noted that while the global tourism industry is resurrecting, it still faces long-term challenges like poverty. With 83% of rural populations living below the poverty line, UNWTO has launched several projects worldwide to promote tourism-driven poverty alleviation, hoping to enrich more rural lives through tourism.
Mr. UJHELYI István, Member of European Parliament, Vice-Chair of TRAN Committee, and initiator of the 2018 EU-China Tourism Year, reflected on the friendly diplomatic relations between China and the EU. He looks forward to continued cooperation in business, tourism, culture, education, and infrastructure under the 10-year anniversary of the “Belt and Road” initiative.
Ms. Maria Helena DE SENNA FERNANDES, Director of Macao Government Tourism Office of the Macao SAR Government, emphasized the synergy of cooperation, advocating for mutual benefits within the tourism industry and through platforms like WTA. She expressed hope for a truly collaborative and interconnected future in the Greater Bay Area, believing in the principle of “1+1>2” for mutually beneficial cooperation.
——As the global tourism market experiences a robust recovery and growth, the pursuit of “development” remains an unwavering goal for the industry.
Mr. LIU Shijun, WTA Vice Chair and Secretary-General, expressed confidence in the future trends of global tourism, citing travel as a catalyst for economic development, a spice for a happy life, a conduit for international exchange, and a booster for cultural diversity.
Mr. LIANG Jianzhang, Co-Founder and Executive Chairman of the Board of Trip.com Group, spoke about tourism satisfying higher psychological needs, promoting human understanding, integration, peace, and inclusive development from a sociological perspective, and fostering innovation and heritage from a philosophical standpoint.
Mr. CHEN Yin, Chairman of China Tourism Group Corporation Limited, pointed out the policy benefits in the tourism industry, the rapid recovery of the inbound and outbound travel market, the emerging trend of deep integration of culture and tourism, and the decisive role of technological innovation. He presented new trends and opportunities in tourism investment and consumption markets.
Mr. WANG Jianping, Vice President of China Tourist Hotel Association and President of Narada Hotel, analyzed the changes and constants in the hotel industry. He emphasized that change is inevitable and eternal, but mastering the industry’s inherent laws and evolving with time is constant. For the tourism hotel industry, continuous breakthroughs in space efficiency and management models are essential for maximizing intrinsic value and improving operational efficiency.
—— The Unwavering “Chinese Contribution” As a Driving Force to Global Tourism
“This year marks the 20th anniversary of the comprehensive strategic partnership between China and Europe, a significant milestone with bilateral relations moving towards mutual benefit”, said H.E. Mr. Dario MIHELIN, Ambassador of the Republic of Croatia to China. Croatia, having opened its doors earlier than other countries post-pandemic, has welcomed over 20 million visitors and looks forward to the return of Chinese tourists.
Mr. Tom JENKINS, CEO of the European Tourism Association (ETOA), acknowledged China’s crucial role in the recovery of Europe’s tourism industry and emphasized the need to cater to long-haul travelers from countries like China.
Mr. Peter SEMONE, Chair of the Pacific Asia Travel Association (PATA), envisioned tourism’s future focusing on people, peace, the planet, culture, cooperation, and mutual benefits. He looked forward to China leading in green and digital growth, accelerating the recovery of inbound tourism, and promoting international cultural and tourism exchanges.
“Thanks to the recovery of the Chinese tourism market, our global performance has made significant progress”, said Mr. Jean-Charles FORTOUL, CEO of APAC Resorts, Club Med. He is fully prepared for the comprehensive rebound of Chinese tourism and will continue to invest in China’s leisure and vacation sector.
As Mr. ZHANG Xu, WTA Chair, summarized, the world is undergoing significant changes, highlighting the interdependent nature of the international community. At this critical juncture, the tourism industry must remain steadfast, resilient, and patient, positioning itself as a vital force in promoting a symbiosis of tradition and modernity, and a shared prosperity of culture and economy.
Harmonizing Humanity and Nature: Addressing the Sustainable Development of Tourism
As the world unites under the banner of sustainable development, the global tourism sector is at a pivotal juncture. The “WTA • Xianghu Dialogue 2023” brought together industry leaders to address this urgent agenda, emphasizing the need for a harmonious balance between development and conservation, with a keen focus on carbon reduction and creating a symbiotic environment for hosts and tourists alike.
Moderate development is key to sustainable tourism. The forum highlighted concerns over “overtourism”, where an influx of visitors exceeds the environmental carrying capacity, placing immense pressure on local natural and cultural landscapes.
Mr. Adam BURKE, WTA Vice Chair and President and CEO of the Los Angeles Tourism & Convention Board, stressed the challenge of “overtourism”. He called for enhanced communication between tourism sector and local communities to ensure that locals perceive the benefits of tourism as outweighing its costs.
Mr. Tom JENKINS, CEO of the European Tourism Association (ETOA), pointed out that European tourist hotspots are affected by overtourism for about 10% of the year, underscoring the need to integrate social sustainability into tourism development strategies.
Ms. Franka GULIN, Chairwoman of the European Travel Commission China Chapter, described sustainable development as not just a keyword but a pathway to a better future. She expressed hope for visitors to enjoy authentic experiences in Europe while ensuring a pleasant living experience for local residents.
Mr. BAO Jigang, Professor of School of Tourism Management and Director of the Center for Tourism Development and Planning Research at Sun Yat-sen University, Winner of the 16th Ulysses Prize Awarded by UNWTO, introduced the concept of “Rights to Tourist Attractions” in 2012. His social practice in Yunnan’s Azheke Village has contributed to poverty alleviation and heritage protection, with a total dividend of 1.43 million yuan distributed in eight instances, showcasing China’s contribution to global vision of poverty reduction.
Mr. Eric DRÉSIN, Secretary-General of the European Travel Agents’ and Tour Operators’ Associations (ECTAA), urged industry leaders to lead by example in promoting sustainable tourism, emphasizing the importance of tracking and assessing carbon emissions and footprints to ensure the industry’s long-term sustainable prosperity.
Ms. María LLINARES, Tourism Counselor of Turespaña, proudly shared that Spain has been recognized as the “most sustainable tourism country”, highlighting Spain’s commitment to sustainable tourism practices and significant achievements in digitalization and sustainability initiatives. Spain boasts 16 national parks and 180 protected areas, with some hotel chains already using 100% green energy.
Ms. Daniela CHIANI, Greater China Director of Switzerland Tourism, expressed a desire for visitors, especially long-haul travelers, to make sustainable choices, detailing Switzerland’s sustainable tourism initiative involving hotels, transportation services, restaurants, and tram suppliers. Over 2000 suppliers have joined this initiative as of 2020.
Mr. Eddie YANG, Asia Director and China Chief Representative of Netherlands Board of Tourism & Conventions, highlighted how tourism can benefit local residents, elevating many successful cases to a strategic level. In a Dutch village named KITO, the influx of Chinese tourists improved local public transport services, benefiting both visitors and local residents, especially children.
Collaborative efforts are a need for sustainable tourism. Ms. Koko TANG, Board Member of the Global Sustainable Tourism Council (GSTC), stated that GSTC is accelerating the improvement of standards and certification systems for sustainable tourism development, enhancing communication with travel agencies, hotels, and destinations to educate about the impact and rights associated with sustainable tourism.
Ms. Michelle Meixiang ZHOU, Senior Social Development Specialist Consultant of the World Bank and Deputy Director General of Finance Center for South-South Cooperation, expressed the World Bank’s eagerness to collaborate with tourism institutions and investors. She recommended policy support for the tourism industry, particularly in low-carbon and green initiatives, to share the benefits and opportunities of tourism development.
Technology and the Future: Catalyzing Innovation in the Tourism Industry
In an era where artificial intelligence, new-generation information technology, and other innovative applications are reshaping the landscape, the tourism industry is witnessing an evolution in new business scenarios, norms and models, calling for transformation in its operational, managerial, and innovative models. The “WTA • Xianghu Dialogue 2023” highlighted these advancements, underscoring the pivotal role of digital technology in energizing various aspects of global tourism.
Digital technology is facilitating multiple chains of global tourism. Ms. TIAN Yu, General Manager Greater China of Rail Europe, introduced the company’s state-of-the-art paperless real-time distribution system, integrating over 200 European train operators, aiming to establish a GPS-like system for trains.
Mr. LIM Kok Kee, Senior Vice President, Public Sector, Asia Pacific, Mastercard Asia/Pacific Pte. Ltd., emphasized the role of data in transforming traveler behavior, creating more vitality and motivation, and enhancing the overall journey experience. From planning to booking, to destination marketing, digital ID authentication and online booking tools help service providers plan long-term in a dynamic environment.
Online Travel Agent (OTA): Pioneers of Technological Innovation Mr. LIANG Jianzhang, Co-Founder and Executive Chairman of the Board of Trip.com Group, discussed the rapid development of metaverse technology and its potential to fulfill psychological needs at low costs. Trip.com is enhancing AI innovation, integrating breakthroughs in natural language interfaces into its services, allowing users to plan trips and resolve travel-related issues through natural language interactions.
Mr. NI Shenghua, Vice President and Chief Technology Officer of Fliggy, outlined a three-stage plan for leveraging large-scale AI models in business decision-making, aiming to address consumer travel issues, align travel routes with consumer demands, and combine differentiated products based on resources and consumer needs respectively, so as to bring decision-making closer to consumers.
Mr. Ray WANG, CEO of Zhejiang Haozhu Network Tech. Co., Ltd., a joint venture between Alibaba and Marriott International, Inc., operating online and digital businesses related to hotels and tourism on Fliggy, discussed the symbiotic relationship between merchants and platforms. The goal is to enhance core user value, reduce transaction costs, and improve efficiency through digital applications.
Mr. PENG Lun, General Manager of Travel, China, Google, sees AI as a tool to precisely identify user needs, enhancing the speed and efficiency of information dissemination and stimulating consumer desire. Google’s strategy focuses on providing precise information to assist Chinese tourists and businesses in going global and deepening cooperation with tourism institutions to promote Chinese cultural heritage and attractions in global market.
Mr. FANG Tengfei, Vice President of Tencent Cloud and General Manager of Tencent Culture and Tourism, shared that technology’s role is to connect and aggregate for cost reduction, quality improvement, and revenue increase, driving the iterative evolution of the entire industry chain ecosystem. WeChat digitalization and WeChat Pay, covering over 70 countries and regions, have become the preferred choice for overseas tourist consumers.
Digital Innovations in Offline Tourism Scenarios Mr. LI Feng, Deputy General Manager of Guangzhou Lingnan Group Holdings Company Limited and President of China Tourist Hotel Association, noted digitalization and intelligence as the biggest change in the tourism hotel industry. By 2030, 80% of services can be realized through intelligent technology, creating unique experiences for guests and helping businesses reshape brand value.
Ms. CHEN Baiyu, President of Guangzhou Lingnan Group Holdings Company Limited and Secretary of the GZL Party Committee, mentioned that data allows traditional enterprises like GZL to better capture market demands. The company’s “dual middle grounds” data has led to the launch of age-specific travel products, catering to diverse age group preferences.
Mr. LI Chengyong, President of Nanjing Jinling Hotel Management Co., Ltd., observed that China’s service industry is undergoing a disruptive revolution. In this era of digitalization, platformization, personalization, and diverse media communication, hotel brand operations must focus on precise analysis of the market, customer, and investor experiences brought by the brand during the business process.
Mr. SHEN Jun, Account Director, Member Relations Asia, VIRTUOSO, predicted that global luxury travel sales would grow by 109% compared to pre-pandemic levels within the next 1-2 years. As AI finds wide application in the travel field, storytelling and value-transmitting IPs will play a more significant role.
Tourism is a journey towards a brighter future. The “WTA • Xianghu Dialogue 2023” marks a pivotal moment in global tourism governance, accelerating the convergence of common interests and solidifying the economic cooperation around this industry that brings all people and nations around the world together. There is every reason to believe that with the global tourism industry joining hands, maintaining confidence, and working together, a brighter future for the tourism sector is not just a possibility but a certainty.