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Tracking the rebound in tourism employment

On World Tourism Day, we highlight the rebound in tourism employment and the ongoing data challenges. Discover how ILO and UN Tourism are working together to fill data gaps to improve our understanding of the labour market in this vital sector.

As we mark World Tourism Day, attention shifts to the millions of workers driving the sector’s recovery. From hotels to restaurants and beyond, tourism jobs are bouncing back—but the pace of recovery is uneven across regions. Reliable data is essential to understand these trends. This is where we come in. ILOSTAT provides critical insights into how tourism employment is evolving across the globe. Complementing this, a new indicator from the United Nations World Tourism Organization (UN Tourism), aimed at supporting the Sustainable Development Goals (SDGs), will help fill remaining data gaps, enabling policymakers to better understand the labour market in this sector and shape informed decisions.

A sector on the rebound

Tourism took one of the hardest hits during the COVID-19 pandemic, with job losses felt worldwide. Now, as the industry regains momentum, we’re seeing employment rise again in hotels, restaurants, and related sectors. However, the pace and scale of this recovery differ significantly between regions. And while data for hotels and restaurants is more widely available, capturing employment figures for the entire tourism sector remains a challenge in many countries.

Filling data gaps

In ILOSTAT, the identification of persons in the tourism sector is done using the International Standard Industrial Classification of All Economic Activities (ISIC rev. 4) at the 4-digit level. The definition encompasses employment in accommodation for visitors, food and beverage services, passenger transportation, recreation and entertainment, and travel services (see methodology box for details).

But the current approach has its limits. We are unable to capture tourism employment in countries that do not provide household survey microdata to the ILO, or when they do, if it lacks the required level of detail. This leaves major gaps in our understanding of the labour market in the tourism sector in some parts of the world, including in countries where tourism is a major driver of jobs and economic development such as  China.

To improve tracking of tourism employment, UN Tourism is introducing a new SDG indicator. Using ILOSTAT data to supplement its own sources, UN Tourism aims to fill some of the current data gaps and provide a clearer picture of the sector’s workforce worldwide.

Employment and decent work trends

More than 270 million workers, or approximately 8.2 percent of the global workforce, are employed in the tourism sector1See methodology box, according to ILO estimates. Unsurprisingly, popular holiday destinations tend to have a higher concentration of workers in tourism. The highest shares are found in the Cook Islands, the Bahamas, and Seychelles, where tourism accounts for between 20 and 28 per cent of total employment.

The sector is known to be labour-intensive and fast-evolving. It is a major driver of economic growth, enterprise development and job creation, particularly for women, youth, migrant workers and local communities. In recent decades, it has experienced continued expansion and diversification to become one of the largest and fastest-growing economic sectors globally. Nevertheless, according to the 2022 Conclusions of the Technical meeting on COVID-19 and sustainable recovery in the tourism sector, the sector continues to face decent work deficits, such as the prevalence of informality, variable and long working hours, low wages, limited access to social protection, gender-based discrimination, poor occupational safety and health (OSH) practices and weak regulation, enforcement and organization of labour.

Looking ahead

Tourism is a critical driver of economic development, especially in regions heavily reliant on the sector. But to ensure this growth benefits workers, it is crucial to promote the sustainable development of the sector with decent work and full and productive employment in line with the ILO Guidelines on decent work and socially responsible tourism and SDG targets 8, 12 and 14. As the sector evolves, so too must the policies that govern it, ensuring that any future growth is inclusive, fair, and beneficial to all.

Between ILOSTAT and the new SDG indicator on tourism employment, policymakers will have better tools at their disposal to track, analyse, and improve conditions in this vital sector.

Methodology

Employment in the tourism sector is defined using the International Standard Industrial Classification of All Economic Activities (ISIC Rev. 4) using the following 4-digit classes: 

Accommodation for visitors

  • 5510 Short term accommodation activities
  • 5520 Camping grounds, recreational vehicle parks and trailer parks
  • 5590 Other accommodation
  • Food and beverage activities
  • 5610 Restaurants and mobile food service activities
  • 5629 Other food service activities
  • 5630 Beverage serving activities

Passenger transportation

  • 4911 Passenger rail transport, interurban
  • 4921 Urban and suburban passenger land transport
  • 4922 Other passenger land transport
  • 5011 Sea and coastal passenger water transport
  • 5021 Inland passenger water transport
  • 5110 Passenger air transport
  • 5221 Service activities incidental to land transportation
  • 5222 Service activities incidental to water transportation
  • 5223 Service activities incidental to air transportation
  • 7710 Renting and leasing of motor vehicles

Recreation and entertainment

  • 7721 Renting and leasing of recreational and sports goods
  • 9000 Creative, arts and entertainment activities
  • 9102 Museums activities and operation of historical sites and buildings
  • 9103 Botanical and zoological gardens and nature reserves activities
  • 9200 Gambling and betting activities
  • 9311 Operation of sports facilities
  • 9319 Other sports activities
  • 9321 Activities of amusement parks and theme parks
  • 9329 Other amusement and recreation activities n.e.c.

Travel agencies and reservation services 

  • 7911 Travel agency activities
  • 7912 Tour operator activities
  • 7990 Other reservation service and related activities

For more details, see the Worker and Sector Profiles (PROFILES) database description.

Users should also note that UN Tourism, in partnership with leading countries, the ILO and the United Nations Statistics Division, has created a multidisciplinary and multi-stakeholder Expert Group on Measuring the Sustainability of Tourism to lead the development of a Statistical Framework for Measuring the Sustainability of Tourism. The framework aims to support a more harmonized and integrated measurement of the impacts and dependencies of tourism on the economy, society and the environment, at both the national and sub-national levels. 

Country-level figures on ILOSTAT are produced using data from the ILO’s Harmonized Microdata collection, which mainly includes labour force and other household surveys. Although microdata are available for 177 countries and territories, tourism sector data can only be generated for about half due to the limited availability of sufficiently detailed ISIC categories.

Global estimates on ILOSTAT are based on actual and imputed data for 189 countries. For more detailed information, refer to the document Global and regional estimates of employment in selected economic activities and/or occupations.

See also

Author

  • Marie-Claire is a Senior Economist in the Data Production and Analysis Unit of the ILO Department of Statistics. She oversees data collection through the annual ILOSTAT questionnaire and coordinates SDG reporting. She spearheaded the development of the ILOSTAT portal and currently oversees content creation and serves as editor-in-chief for the blog. Previously, she held senior roles at the U.S. Bureau of Labour Statistics, including Supervisory Economist and acting Chief of the Division of International Labor Comparisons.

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