The 24th World Travel & Tourism Council (WTTC) Global Summit officially opened today, 8th October in Perth, Western Australia with an update to its ground-breaking environmental footprint data.
The WTTC’s latest Environmental & Social Research (ESR) report, created in partnership with the Ministry of Tourism of Saudi Arabia, reported a marked decrease in greenhouse gas (GHG) emissions from the global travel and tourism sectors in the past year.
According to the report, joint emissions figures from the travel and tourism industries stand at 6.7 percent as of the end of 2023. This is lower than the 7.8 percent reported back in 2019 prior to the travel restrictions imposed throughout the pandemic years.
Interestingly, global GHG emissions in the past year were 12 percent below the 2019 peak, with GHG intensity (emissions per unit of gross domestic product) falling 8.4 percent during this period. This demonstrates the sector’s growth is becoming cleaner.
A defining moment
WTTC president and CEO Julia Simpson remarked: “Our sector is proving that we can grow responsibly. We’re decoupling growth from emissions; travel and tourism are expanding economically while lowering its environmental footprint. “
Simpson added that this defining moment proves that innovation and sustainability go hand in hand in shaping the future of global tourism.
However, she also reiterated that the long-term goal is an absolute reduction in GHG emissions even as the sector decouples its growth from an increase in such emissions.
Simpson said: “We must accelerate this progress significantly to meet the Paris climate targets. We’re on the right track, but we need to up our game.”
Room for improvement and accelerated progress
Although 2023 showed positive trends compared to 2019, it’s clear that there are still significant opportunities to accelerate the green transition.
The 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 (oil, coal, and natural gas) dropped to 88.2 percent from 90 percent in 2019.
Also, the share of low-carbon energy sources (nuclear and renewables) increased from 5.1 percent in 2019 to 5.9 percent in 2023, reflecting ongoing efforts to reduce dependence on fossil fuels.
Improved revenue generation
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 joint tax revenues amounted to US$3.32TN. This equates to 9.6 percent of total global tax revenues.
The WTTC opines that governments must use these additional revenues to reinvest in decarbonising infrastructure, expanding renewable energies and supporting businesses in their green transition.
