Europe Leads Global Tourism FDI Projects in 2024

Europe has emerged as a global leader in foreign direct investment (FDI) for tourism, hosting 40 percent of the world’s greenfield projects in 2023, says the latest report released by the Financial Times in collaboration with the UN World Tourism Organization (UN Tourism) and with the support of the Diriyah Gate Company.

According to the “FDI Tourism Investment Report 2024”, these investments highlight the continent’s resilience and its alignment with sustainable development goals in the wake of the pandemic. By value, Europe accounted for nearly 22 percent of all greenfield FDI in tourism, a testament to its enduring appeal and robust infrastructure.

“The rise of new technologies and the need for greater sustainability are constantly impacting the tourism sector, presenting both opportunities and challenges that call for innovative approaches,” said UN Tourism Secretary-General Zurab Pololikashvili. “More and better-targeted investment will be key to transforming the tourism sector, creating jobs, and driving inclusive and sustainable growth.”

Global tourism investment trends

The report, covering 2023 data, recorded 289 greenfield FDI projects globally in the tourism sector, reflecting an 8 percent increase compared to the previous year. This growth underscores the industry’s recovery and adaptability in the face of ongoing global challenges. Investment in eco-friendly and community-focused initiatives has gained momentum, signaling a shift toward sustainability across the sector.

Spotlight on regional performance

The Americas, particularly North America, claimed the second-largest share of tourism FDI projects at 24 percent, with Asia and the Pacific following closely with 23 percent. The Middle East and Africa accounted for smaller, yet notable, shares of 7 percent and 6 percent, respectively. Noteworthy individual contributors included the United States and the United Kingdom, which collectively hosted 15 percent of all tourism investment projects.

Focus on sustainability

The tourism sector’s transition toward sustainability is further evident in project themes. Over half of all FDI initiatives in tourism during 2023 emphasized environmentally conscious development, such as energy efficiency and community empowerment. This marks a growing awareness among investors about the importance of aligning projects with broader climate and social goals.

Recovery and outlook

According to the report, the resurgence in greenfield FDI within tourism aligns with broader industry trends of recovery, as international arrivals reached 96 percent of pre-pandemic levels in 2024 through July. Investments in innovative and sustainable tourism strategies are expected to continue driving the sector’s resilience and growth.

The data from the “fDi Tourism Investment Report 2024” was released during the 122nd UN Tourism Executive Council meeting in Cartagena de Indias, Colombia.