Oceania’s travel and tourism sector could add an additional US$112 billion into the region’s economy over the next decade, bringing its total contribution to a record-breaking US$336 billion by 2034.
The findings from a pioneering new report by WTTC released at its Global Summit in Perth projected that if managed well, the region could create 1.1 million new jobs, bringing total employment in the sector to 3.5 million by 2034.
This includes Australasia, Melanesia, Micronesia, and Polynesia, which are regionally poised to become a global leader in ecotourism and sustainable travel, while significantly boosting its economy.
Speaking at the summit, WTTC senior vice president Virginia Messina said the sector is forecast to grow at an annual rate of 3.2 per cent, outpacing the broader economy’s rate of 2.9 per cent and resulting in an economic contribution of US$306.9 billion by 2034. However, she stated that additional efforts could unlock even greater potential, and “we could unlock an additional $29 billion for the region of Oceania if the right investments are made”, bringing the total to US$336 billion.
“But those investments obviously need to be made now, and it is a unique opportunity in this region,” she added.
Developed in collaboration with visa services provider VFS Global, the report Unlocking Opportunities for Travel & Tourism Growth in Oceania outlined strategic investments needed for the region. It includes improving air connectivity, airport expansions, streamlining visa processes, and investing in sustainable infrastructure to mitigate climate change impacts.
“We’re working with a number of partners, particularly VFS, who kindly sponsored this report, and are looking at how we can come up with faster processes and implement technology to streamline those visa requirements. (Air) connectivity is (also) incredibly important, particularly for this part of the world. There’s no other way we can get here,” she pointed out.
Oceania’s travel and tourism industry is set to grow by 16.5 per cent above pre-pandemic levels by the end of 2024, reaching US$224 billion. Employment in the sector is forecast to exceed pre-pandemic figures by 4.8 per cent, employing 2.3 million people.
The report noted that the region’s tourism sector bounced back through domestic travel to surpass pre-pandemic levels by 2023, with Australia the primary force behind the recovery. However, international visitor spending remains slightly behind 2019 levels, with full recovery not expected until 2025.
Despite this, the WTTC report details a clear roadmap for the region’s tourism industry to thrive.
“There’s a lot of unique products that this region has to offer, including the wildlife and nature of this part of the world. Gastronomy is also taken very seriously where everything we’ve been consuming here with our counterparts at Tourism Australia and Tourism Western Australia has been local and very diverse to other parts of the world. We need to protect these islands and ensure the potential growth benefits all communities” noted Messina.
Echoing these sentiments, WTTC president and CEO Julia Simpson stated: “By investing in climate-resilient infrastructure and supporting indigenous communities, Oceania could become a global leader in eco-conscious, inclusive tourism.”
