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Future of Travel Pt 1: AI in tourism demands policy shifts

According to a new report from the OECD on artificial Intelligence and tourism, AI’s potential hinges on responsible implementation.

AI offers significant opportunities to drive innovation and sustainability in tourism, but realising its full potential depends on substantial policy shifts to ensure its responsible and equitable adoption. 

This is one of the key recommendations of a new report from the G7 and the Organisation for Economic Co-operation and Development (OECD), titled Artificial Intelligence and Tourism. 

Transforming how destinations, businesses, and governments operate, AI is redefining the tourism sector by addressing key challenges like data protection, workforce adaptation, and supporting SMEs in navigating rapid technological advancements. AI opens the door to personalised travel experiences and more sustainable practices, offering transformative benefits for the industry. However, there are major obstacles in the way.

SMEs face barriers

While larger global enterprises are rapidly leveraging AI, SMEs often face barriers due to limited resources and expertise. This disparity underlines the need for public sector involvement to bridge gaps, foster innovation, and manage risks.

AI applications in tourism have already begun to transform the industry by enhancing visitor experiences with personalised services, improving accessibility, and diversifying cultural and recreational offerings. Tools powered by AI can optimise visitor flows, streamline pricing, and automate routine processes, reducing operational costs while improving efficiency. These advancements also contribute to sustainability by better managing resources, distributing tourist traffic more evenly, and supporting local economic growth.

Policy priorities for unlocking AI’s potential

The G7/OECD report highlights the role of policymakers in ensuring AI’s successful integration into tourism. Key focus areas include:

  1. Data-driven policymaking: AI enables the collection and analysis of granular data, offering insights into tourist behaviours, market segmentation, and regional trends. This can inform strategic decisions, such as diversifying tourism offerings and improving mobility systems.
  2. Cross-sector alignment: Tourism policy overlaps with transport, regional development, and environmental conservation. AI can identify synergies and trade-offs, promoting horizontal coordination between government agencies and aligning efforts across local, regional, and national levels.
  3. Digital infrastructure and skills development: Policymakers must address disparities in access to digital tools and expertise. Investments in innovation hubs, training programs, and robust infrastructure are critical to enabling SMEs and less-developed regions to adopt AI effectively.
  4. Transparency and accountability: Trust in AI-driven decisions is paramount. Clear regulations and safeguards are needed to protect data, reduce bias in algorithms, and ensure that AI systems remain transparent and understandable.

AI for destinations and local communities

AI offers transformative potential for destination management and local community engagement. Predictive maintenance, visitor flow monitoring, and resource optimisation can improve infrastructure and preserve cultural and natural assets. AI-powered tools can support marketing strategies, enhance security, and track sustainability metrics, enabling destinations to strike a balance between attracting tourists and maintaining residents’ quality of life.

The report emphasises the role of destination management organisations (DMOs) in guiding AI integration. By fostering collaboration, sharing data, and leveraging AI for predictive analysis, DMOs can help destinations adapt to evolving demands while promoting equitable and sustainable tourism practices.

Examples of AI in action

The report cites several successful applications of AI in public administration and tourism management:

  • Canada’s Visto AI: Enhances immigration and visa processes with personalised guidance and real-time updates.
  • Portugal’s Environment Agency: Uses AI to analyse waste management and optimise transport systems.
  • Korea’s AI strategy: Focuses on data systems and innovation hubs to support regional development.

These examples demonstrate AI’s ability to streamline operations, improve responsiveness, and enable evidence-based decision-making.

The path forward

The G7/OECD report calls for the alignment of AI policies with sustainability goals, ensuring equitable access and fostering collaboration between stakeholders. By embracing innovation and addressing disparities, the tourism industry can unlock AI’s full potential, creating a more resilient and inclusive future.

* This is the first in a series of articles based on the OECD paper. Read the ‘Artificial Intelligence and tourism’ report here.

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