Oceania's Travel and Tourism Industry Stands to Bolster the Region's Economy by a Projected US$112 Billion Over the Coming Decade
The World Travel & Tourism Council (WTTC) has recently released a report titled "Unlocking Opportunities for Travel & Tourism Growth in Oceania," outlining the potential of the region's sector if strategic investments are made. The report predicts that Oceania's Travel & Tourism sector could inject an additional US$112BN to the region's economy by 2034, bringing the total contribution to US$ 336BN.
The report highlights the need for sustainable infrastructure, including renewable energy solutions for tourism infrastructure, to reduce the sector's environmental footprint and attract environmentally conscious travelers. This aligns with global sustainability goals endorsed by major summits and investor groups emphasizing long-term, responsible finance and investment principles. Sustainable infrastructure supports resilience and enhances the sector’s contribution to GDP, strengthening the economy.
Enhanced air connectivity is also critical for the region, improving accessibility to island destinations vital in Oceania. This could boost tourist arrivals and expand market reach, facilitating trade and regional integration, which are important for broader economic development.
Simplifying visa procedures is another key factor in unlocking this potential growth. Easier access improves visitor experience and extends lengths of stay, which increases spending and supports local businesses and communities.
Embedding eco-friendly practices in tourism operations is essential for preserving natural resources crucial for attracting tourists long-term. This supports social license to operate, protects Indigenous and local communities, and enhances Oceania’s brand as a responsible tourism destination, aligning with global expectations on sustainability and social equity.
Comprehensive policy packages that integrate infrastructure development, environmental protections, investment incentives, and social inclusion create an enabling environment for sustainable tourism growth. Such frameworks promote coordinated action among governments, private sector, and communities, ensuring balanced benefits and reducing risks such as overtourism or environmental degradation.
Indigenous-led tourism is critical in this transition, providing authentic cultural experiences while ensuring local communities benefit directly from tourism revenue.
VFS Global, a world leader in innovative visa solutions, is well-positioned to support these efforts by enabling more efficient visa processes, which could drive increased multi-country travel across the region.
By the end of this year, Travel & Tourism in Oceania is forecast to grow by 16.5% above pre-pandemic levels, employing 2.3 million people. However, international visitor spending is projected to remain 4% below 2019 levels, with a full recovery not expected until 2025.
These strategic investments and policies form a virtuous cycle of better accessibility, sustainability, and community benefit, which can significantly uplift Oceania’s Travel & Tourism sector’s contributions to economic prosperity and social well-being by 2034. This growth could support an extra 1.1 million jobs, raising the total employment in the region supported by Travel & Tourism to 3.5 million by 2034. For Oceania specifically, leveraging these investments and policies fosters inclusive national development, enhances local communities' income, and preserves the region’s ecological and cultural assets critical for sustained tourism attractiveness.
Businesses and finance will play crucial roles in Oceania's Travel & Tourism sector by making strategic investments in sustainable infrastructure and simplifying visa procedures, as these actions will enhance accessibility, reduce environmental impact, and support local communities, thereby helping the sector grow and contribute significantly to the region's economic prosperity by 2034. Efficient visa processes, like those offered by VFS Global, could drive increased regional travel and employment opportunities, while the alignment with global sustainability goals will preserve Oceania's natural and cultural assets for long-term tourism attractiveness.
