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WTTC introduces new way to measure the impact of tourism across 184 countries

The World Travel and Tourism Council has launched a new set of criteria to determine its tourism rankings, measuring countries based on the economic, environmental, and social impact of their travel industries. The new Power, Efficiency and Opportunity indices cover 184 countries and aim to help destinations that prioritize viable tourism rather than simply increasing traveler numbers.

For years, tourism boards have focused on attracting international travelers. However, rising housing costs, short-term rentals, overcrowding, and extreme weather conditions have increased tourism’s impact on local communities and the environment, per Euronews.

The World Travel & Tourism Council developed the new ranking criteria in collaboration with Oxford Economics to evaluate the tourism industry. They consider economic contribution, environmental efficiency, and tourism’s role in creating employment opportunities.

WTTC President and CEO Gloria Guevara said the indices would help destinations understand tourism’s broader impact and support better decision-making. Moreover, she added that the industry must focus on quality alongside quantity, pointing to its potential to create employment opportunities for women and younger people.

“Travel and tourism is one of the world’s most powerful sectors, and these new indices give us a broader and more holistic way to understand its impact,” she said (H/T: Euronews)

Furthermore, Guevara said:

“As the sector grows, we must focus on quality as well as quantity of growth. By assessing economic contribution, environmental efficiency and employment opportunities together, the indices provide valuable insights to support sustainable growth and informed decision-making, while highlighting the sector’s ability to create opportunities for women and young people around the world,” Gloria said (H/T: Euronews)

The countries that lead the Tourism Power Index

According to the rankings, the United States of America takes the top position, followed by China and India. Germany ranks fourth, followed by France in fifth. Japan, the United Kingdom, Mexico, Spain, and Saudi Arabia also rank in the top ten, per Euronews.

The ranking showcases the countries with the largest tourism industries and their contribution to national economies. Meanwhile, the Environmental Efficiency Index evaluates how effectively countries generate economic benefits from tourism while keeping their environmental impact low. Among the high-income economies, Sweden has clinched the highest position, while Costa Rica has ranked first among the upper-middle-income economies.

The Opportunity Index examines tourism’s contribution to social development and employment. It considers employment growth and the industry’s role in providing jobs to women and youth.

Croatia ranked at the top among the high-income economies in the criteria, while the Maldives secured the top position in the upper-middle-income category. El Salvador led the lower-middle-income section, and The Gambia ranked first in the low-income category.

WTTC also highlighted nations such as the Maldives, Grenada, and Belize, where tourism supports a large share of national employment. These new, divided criteria give tourism authorities a broader understanding of the industry’s performance, moving beyond the old practice of measuring success by visitor numbers alone.

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