Sustainable tourism has considerable development potential in many LDCs. The sector, with its extensive linkages to a myriad of stakeholders and activities, can contribute to economic growth, community development, intercultural dialogue, and environmental conservation.
The Covid-19 pandemic has caused unprecedented disruption to the global tourism industry, and LDCs saw tourist arrivals plunge by 67% in 2020. The social effects of the crisis have been severe, as workers, small firms and communities involved in tourism struggle to sustain livelihoods and satisfy basic needs. Nevertheless, LDCs can seek to capitalize on the crisis and the tourism sector＊s visibility in order to mobilize finance as tourism＊s higher profile can be a catalyst to attract public and private finance via strategies and programmes built around inclusive domestic entrepreneurship and long-term sustainability. This can be a way to develop other economic areas linked to the sector such as agriculture, crafts, and transport, hence reducing poverty by creating local jobs and by attracting foreign currency. However, this must be done in a sustainable way as if the tourism industry is not managed properly, it can also have harmful effects on local culture and on the quality of the environment instead of promising avenues for sustainable development.
The PSF is an occasion for LDCs to promote private sector participation and investment in this strategic sector with the aim of making it an economic driver for the rest of their economies.