Tourism in a recession

Talk of the recession, frozen credit, and home foreclosures seems to dominate the airwaves these days. So it's natural to think that tourism, one of modern life's great indulgences, might be jettisoned quickly by consumers worried about the long-term health of the global economy, not to mention their own finances. After all, staycations can be enticing when money is tight.

Yet many economists and decision-makers, including tourism experts at the United Nations, herald tourism as an essential part of the economic recovery. Tourism is the world's largest industry in terms of jobs, especially for young people, women and other new entrants into the job market.

And many experts are arguing for increased support of tourism, an important source of international trade, in the various stimulus packages being developed around the world. Tourism even got some consideration at the recent G20 meetings in London.

One of the biggest headlines from G20 was the rich nations' decision to provide $1.1 trillion (via the IMF) in loans and financial guarantees. This credit is intended primarily for developing countries, citing the developing world as the key to the global recovery. Since tourism is a pillar of so many Latin American countries, tourism reasonably will figure into the economic recovery.

Tourism is also linked to climate change, so the best investments in tourism must effectively deal with the potential downsides of future development. For our team, that means smart siting, design and construction decisions in resort and infrastructure development, as well as a keen eye toward the negative impacts of land use change, which is especially important in tropical countries. Not to mention that the aesthetic beauty and other natural assets are what draw tourists in the first place.