Tourism & Entertainment
SMART DECISION-MAKING FOR TOURISM VALUE CHAINS
Tourism and entertainment
Description of the DVC THEME
Prior to the COVID-19 pandemic, Tourism was one of the largest and fastest growing sectors in the world economy, with 10% of global GDP and $9 trillion value in 2019, according to WTTC. In the OECD area, the Tourism plays a key role in the economic activity in terms of jobs (5.9% employment), export revenues (21.3% service exports) and value (4.1% GDP). However, COVID-19 has caused a huge crisis for the tourism industry, with a 65% dropping of arrivals during the first half of the year, being the Southern Mediterranean Europe one of the areas with largest declines (73%) and putting in severe risk millions of jobs and SMEs. This has showcased the important role that the tourism plays in several economies, but also the need to accelerate its digital transformation and foster innovation, with the sustainability in its core.
Data analytics and AI are technologies that could bring important benefits to relaunch the sector during the COVID-19 scenario, but if and only if the Tourism DVC is developed and exploited. This means that the different suppliers, intermediaries, and other stakeholders of the value chain are aligned, which traditionally have been very fragmented. The key challenge is to convert collected data in valuable knowledge that could be exploited by its stakeholders to improve decision making travel agencies and reservation, transport, accommodation, and food- and beverage- serving. One key issue to be dealt with is that current tourism intelligence systems are based on pre-COVID19 data, so novel approaches are needed to extract value from the combination of existing datasets or from other sources.
Sub-challenges composing this experiment:
Expected global results:
- Increase the maturity of Smart Destinations, improving the ability of decision makers and businesses to learn and adapt to changes, such as emergent market trends or unexpected crisis like COVID-19
- Increase the digitization of tourism businesses and its services, facilitating the access of micro-SMEs and SMEs to data-based intelligence solutions.
- Contribute to the recovery of the Tourism sector during/after the COVID-19 crisis, bringing novel tools and digital enablers that could unlock or raise business opportunities