The 10 Best Countries for Tourism

March 22, 2013 by Mike Sauter

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Tourism is an increasingly important industry for many countries. According to the World Economic Forum (WEF), it accounts for 9% of global gross domestic product and is projected to represent one in every 10 jobs by 2022.

The World Economic Forum’s 2013 Travel and Tourism Competitiveness Report analyzed 140 countries, ranking policies, infrastructure and resources that affect tourism. For the fifth consecutive year, Switzerland had the best tourism industry in the world. The United States rated sixth overall. Based on the WEF’s report, these are the 10 best countries for tourism.

Click here to see the 10 best countries for tourism

A review of the data shows that these countries do not rely on tourism. Unlike Jamaica and Barbados, where 15% or more of the national GDP comes from travel and tourism, it represents less than 6% of eight of the ten economies. It is just 1.3% of the U.S. economy.

Instead, these 10 countries are diverse, powerful, business-friendly economies. Evidence of this is their high GDP per capita. Only 25 of the 140 countries reviewed by the WEF have a GDP per capita of $35,000 or more. Of the 10 best countries for tourism, nine have a GDP per capita of at least $35,000 . In the majority, it is at least $40,000. These wealthy economies are able to develop the kind of infrastructures that make them attractive to tourists and to travelers.

Nearly all these countries have advantages over other countries’ tourism sectors because of their natural and cultural resources. Countries like Germany, Spain and the United Kingdom are full of UNESCO World Heritage cultural sites, fairs and exhibitions, and sports stadiums that draw people to travel there. The United States averaged 790 international fairs and exhibitions per year between 2009 and 2011, almost 200 more than the next-highest country

The U.S. has more natural heritage sites than every country, other than Australia and China. However, unlike most countries in the top 10, the United States ranked very low for efforts at sustaining its natural resources. All but two of the top 10 countries for travel and tourism were in the top 25 for long-term environmental sustainability. The U.S. ranked 112th.

Having a good business environment as well as travel infrastructure are crucial to attracting visitors through business, according to the study. The U.S. excels in this measure, as do top countries like Switzerland and Singapore.

The top 10 countries all have strong infrastructure. The U.S. is second overall in this air travel, for example. It does lag many of the top countries in ground transportation, for which it ranked 27th overall.

Based on data from the WEF’s Travel and Tourism Competitiveness Report 2013, 24/7 Wall St. reviewed the 10 countries with the most competitive travel and tourism sectors.The WEF focused on three key areas — travel and tourism regulatory framework, travel and tourism business environment and infrastructure, and travel and tourism human, cultural and natural resources. Unemployment came from OECD, and is for the most recent available month.

These are the 10 best countries for tourism.

10. Singapore
> Travel and tourism competitiveness score: 5.23
> Travel and tourism industry’s share of employment: 4.4%
> Travel and tourism economy’s share of GDP: 10.3%
> GDP per capita: $59,710
> Unemployment rate: N/A

Singapore is the country that capitalizes the most on travel from tourism in the Asia Pacific region. The country has limited natural resources, ranking 92nd among all nations, and the lowest of any top country for travel and tourism. The small island nation makes up for this with a strong regulatory framework, excelling in protection of property rights, encouragement for foreign investment and highly transparent government policymaking. Singapore also scored well for the quality of its business environment and infrastructure, partly because of its high-quality ports, roads and ground transport such as taxis and trains.

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9. Sweden
> Travel and tourism competitiveness score: 5.24
> Travel and tourism industry’s share of employment: 1.7%
> Travel and tourism economy’s share of GDP: 5.5%
> GDP per capita: $40,705
> Unemployment rate: 8.0%

Sweden takes care of its environment. The country scored the highest in terms of environmental sustainability, with the most stringent environmental policies and enforcement in the world. The government touts that it has among the lowest levels of greenhouse gas emissions in the European Union and Organization for Economic Cooperation and Development (OECD), and that emissions in 2020 are expected to be 40% lower than they were in 1990. In addition, the state scored the second highest in terms of culture resources, receiving high marks for having many sports stadiums per capita and a large number of international fairs and exhibitions, along with 14 UNESCO World Heritage cultural sites, five more than the United States.

8. Canada
> Travel and tourism competitiveness score: 5.28
> Travel and tourism industry’s share of employment: 1.8%
> Travel and tourism economy’s share of GDP: 4.4%
> GDP per capita: $40,519
> Unemployment rate: 7.0%

Canada is the only country rated by the WEF as having a better air transportation infrastructure than the United States. Canada has among the world’s highest per capita airports and flight departures. Like its neighbor to the south, the United States, Canada is rich in natural resources, making it attractive for tourists. According to the WEF, Canada’s natural environment is among the world’s most pristine. The country has nine UNESCO World Heritage natural sites, behind only Australia, China, Russia and the U.S. Among these is Dinosaur Provincial Park, which, according to UNESCO, “contains some of the most important fossil specimens discovered from the ‘Age of Dinosaurs’ period of Earth’s history.”

7. France
> Travel and tourism competitiveness score: 5.31
> Travel and tourism industry’s share of employment: 4.3%
> Travel and tourism economy’s share of GDP: 9.3%
> GDP per capita: $35,068
> Unemployment rate: 10.6%

France received high marks for its transportation infrastructure in both ground and air travel. The WEF ranked the country’s road quality the best in the world, while its railroad infrastructure was ranked fourth. France has more airlines operating in the country than all but two other countries. Also, international airline seat kilometers per week, a key measurement indicating the amount of international travel, was higher than all but three countries. In addition, France received one the highest ranks for cultural resources. It had 45 UNESCO World Heritage cultural sites, the fourth highest number in the world. In addition, 4.2% of the world’s creative exports come from France, the eighth highest of all countries.

6. United States
> Travel and tourism competitiveness score: 5.32
> Travel and tourism industry’s share of employment: 4.0%
> Travel and tourism economy’s share of GDP: 8.6%
> GDP per capita: $48,328
> Unemployment rate: 7.7%

The United States is the top country for travel and tourism outside of Europe. The U.S. benefits from a strong air transport infrastructure. More than any country in the world, it offers more passengers the option to traverse greater distances both domestically and internationally — as measured in airline seat kilometers per week. The United States also receives a top grade for natural resources from the WEF. It has 13 UNESCO World Heritage natural sites, tied with China, and behind only Australia. Among these are Grand Canyon, Yosemite and Yellowstone National Parks. The United States is also a leader culturally, with more international fairs and exhibitions, on average, than any other country in the world.

5. United Kingdom
> Travel and tourism competitiveness score: 5.38 (tied for 4th highest)
> Travel and tourism industry’s share of employment: 3.1%
> Travel and tourism economy’s share of GDP: 6.7%
> GDP per capita: $36,522
> Unemployment rate: 7.7%

The United Kingdom ranked among the top 10 countries in six of the 14 pillars measured by the WEF’s travel and tourism report. It was ranked fifth in terms of air transport infrastructure. The U.K. was second only to the U.S. in international airline kilometers per week, while more airlines operated in the U.K. than all but three other countries worldwide. As of 2010, London had the busiest airspace in the entire world in terms of passenger traffic. The country’s best rank was in cultural resources, scoring higher than all but two other countries. The U.K. had an average of 449 international fairs and exhibitions a year between 2009 and 2011, more than all but three other countries.

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4. Spain
> Travel and tourism competitiveness score: 5.38 (tied for 4th highest)
> Travel and tourism industry’s share of employment: 2.7%
> Travel and tourism economy’s share of GDP: 14.7%
> GDP per capita: $30,478
> Unemployment rate: 26.2%

No country scored higher than Spain for its cultural resources. There are 53 World Heritage cultural sites in the country, more than all but China. In addition, Spain is among the 10 best countries in terms of both air and ground transportation, along with the country’s prioritization of the tourism industry. Tourism comprises 14.7% of the country’s GDP, compared with 8.6% in the United States. The Spanish economy has been in dire straights in recent years, with unemployment in the country hovering around 26%. Although tourism declined in the latter years of the past decade, tourism has rebounded and the country had 1 million more visitors in 2012 compared to 2011.

3. Austria
> Travel and tourism competitiveness score: 5.39 (tied for 2nd highest)
> Travel and tourism industry’s share of employment: 5.2%
> Travel and tourism economy’s share of GDP: 13.7%
> GDP per capita: $41,556
> Unemployment rate: 4.9%

Austria is one of the most pro-tourism regulators in the world, promoting environmental sustainability, safety and security, as well as health and hygiene. According to the WEF, residents rated their government’s environmental regulations as among the most stringent. However, no country rated the quality of its natural environment better. Travelers are unlikely to have difficulty finding a doctor in an emergency; there were 4.9 physicians per 1,000 people in Austria as of the most recent count. The country has nine UNESCO World Heritage cultural sites, as many as the United States. Among these are the centers of the cities of Graz, Salzburg and Vienna, as well as the former residence of the Habsburg emperors.

2. Germany
> Travel and tourism competitiveness score: 5.39 (tied for 2nd highest)
> Travel and tourism industry’s share of employment: 1.8%
> Travel and tourism economy’s share of GDP: 4.5%
> GDP per capita: $38,077
> Unemployment rate: 5.3%

Germany has the world’s most stringent environmental regulations, as well as some of its most vigorous enforcement, according to the a WEF. Because of this, Germany is one of the top performing nations for environmental sustainability in the world. Germany also scored well for air and ground transportation infrastructure, due in part to its top-rated international air transport network and its railroad system. The nation is a leader in guiding the eurozone through the sovereign debt crisis. In January, Germany’s unemployment rate was 5.3%, versus 11.9% for the eurozone as a whole.

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1. Switzerland
> Travel and tourism competitiveness score: 5.66
> Travel and tourism industry’s share of employment: 3.3%
> Travel and tourism economy’s share of GDP: 8.6%
> GDP per capita: $44,452
> Unemployment rate: 4.4%

No country has a stronger travel and tourism industry than Switzerland, according to the WEF. Switzerland had the second best safety and security measures in place of all countries. In addition, the country ranked second-highest in terms of environmental stability, receiving high marks for both the stringency of its regulations and enforcement. The country ranked the highest in terms of human resources. For instance, the school system, the availability of specialized research and training, and staff training in general were considered the best of all countries, allowing the workers to have the qualified skills to help maintain a robust tourism industry.

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