The tourism industry is undergoing a rapid transformation, driven by the third wave of advancements in digital technology. While previous iterations focused on the Internet (during the 1990s) and the rise of smartphones and cloud-based computing (from 2007), the current phase of digitalisation is being brought about through the increasing prominence of Artificial Intelligence (AI) and data-driven decision-making. This transformation presents unprecedented opportunities, but also significant challenges that require careful consideration. Exploring how to navigate this new landscape, Orla O'Keeffe (Fáilte Ireland), Caroline Dunlea (Core Optimisation), Sanne van Let (NBTC) and Hermione Nevill (World Bank) emphasise the importance of ethical AI implementation, facilitating sustainable development and ensuring digital accessibility.

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The Ethical Use of AI

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Generative AI is a transformative force that requires careful consideration before it can be relied upon. Its capabilities are rapidly advancing, doubling roughly every four months. This rapid pace of change makes it essential for businesses to where the data it uses comes from and how it is being used, especially when recognising that most organisations are implementing third-party AI tools and society's increased desire for privacy.

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Crucially, there remains a risk that AI may exacerbate existing inequalities, by creating a digital divide between those destinations and businesses that are ready to adopt it and those that are not. This is particularly concerning for emerging markets, such as sub Saharan Africa, where many SMEs lack basic digital infrastructure, such as websites and online booking systems, rendering them unable to effectively use AI tools. To put this into perspective, only 35% of payments in this region are digitally enabled. With the rise of AI searches for trip planning, it places these destinations at a significant disadvantage, missing out on visibility and exposure due to the lack of available data. Therefore, while AI has the potential to support the tracking of key economic indicators, there is also the potential for it to become a polarising technology.

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While AI can be a powerful tool, it should not replace human ingenuity. Combining AI with manual oversight is the best approach for producing high-quality and relevant content. However, businesses need to fully understand the various AI Acts being enacted around the world to empower their teams with the knowledge to make informed decisions about its diverse applications and the benefits and disadvantages for the business and its customers. This will enable AI to become part of a broader business strategy. To do so, robust governance and controls need to be clearly defined and established.

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EU AI Act - Four Levels of Risk

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Yet, a cautious optimism should be taken to pilot testing AI, building upon the prevalence of business use cases and proven return on investment from efficiency savings. While decisions around AI applications can be made to a certain extent, many DMOs do not have sufficient in-house knowledge of the ethical aspects of AI. This makes it essential for them to bring in external expertise to guide them. It is also important to note that given the overwhelming number of AI solutions offering their services, many businesses are looking to DMOs for guidance. As such, this is an area where DMOs need to offer clear and consistent advice.

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At the same time, DMOs need to find partners who can assist businesses to reach a base level of digital maturity to provide the building blocks for the widespread adoption of AI. Fáilte Ireland's Digital That Delivers programme is a leading example of such supportive action being taken by a DMO. Transforming the attractions and experience sector, one aspect of this programme is boosting the presence of connected online booking systems from 11% in 2021 to between 50-60% by the end of 2026 and helping these small businesses access APIs to receive more business through enhanced exposure to international and domestic audiences.  

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Enabling a Sustainable Transition

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Data is also a central component of ensuring tourism becomes more sustainable and is able to provide clarity around the impact it has at a local national and global level. In this regard, a key issue arises with the challenge of verifying sustainability claims, especially since many businesses are not yet measuring their carbon footprint. This makes it almost impossible to provide evidence-based information to travellers, in line with new legislation entering into force around the world, such as the EU Green Claims Directive. Rather than blindly rushing into actions without a clear plan, a focus on identifying the most relevant data points and an understanding of how they will be used to shape strategic decisions is necessary for enabling change. As a result, destinations need to prioritise the establishment of robust systems for measuring environmental impacts before becoming exposed to potential greenwashing claims.

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DMOs such as Fáilte Ireland, through its Climate Action Programme, and NBTC, with its Tourism Impact Monitor, are leaders in this field, recognising the value of intentional monitoring and management as a precursor to the inclusion of sustainability as a component of brand messaging. Through these initiatives they are supporting businesses to make the right strategic decisions based on a thorough awareness of destination-specific circumstances. Fáilte Ireland is doing so by directing businesses to external specialists that are enabling SMEs to develop tailored climate action plans to reduce the carbon emissions from their operations. The DMO is also actively investing in a long-term ambition to develop its own sustainability certification scheme to independently assess the environmental performance of businesses and provide accurate recommendations to eco-conscious travellers.

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In the case of the Netherlands, the data-driven approach is broader, incorporating economic and social impact data, such as visitor dispersal and seasonality, alongside environmental data. A series of dashboards bring this data to life and provide much needed support for marketers and policymakers to make strategic decisions that affect the future of Dutch tourism. Based on these granular insights, its possible to identify the target audiences which best align with long-term sustainability ambitions and adjust marketing strategies accordingly. At the same time, this data visualisation also enables a clearer comparison of the impact of different policies across all Dutch regions to identify which management approaches work best so that they can be rolled out nationally.

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On the other hand, for emerging destinations, there is a significant opportunity to work with governments to proactively embed sustainability at the heart of their development plans from the outset through carefully considered spatial planning. This can even include decisions around the types of investors and developers that are invited to participate in the process, with values and ethics a central component for selecting the right partners for enabling communities through tourism. Enforcement mechanisms are key to holding these trusted partners to account for their behaviour as well as determining the necessary structures to plan for ongoing management action, such as graded levels of levies.

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Ensuring Digital Accessibility

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Intentional approaches are also needed for driving inclusivity and digital accessibility. 20% of people have difficulty using a website that does not meet accessibility standards, impacting bounce rates and conversions. Even simple adjustments to websites can make a significant difference to those with additional needs, such as ensuring that websites can be navigated by screen readers and that pages are well structured with buttons in the right places. Having a long-term outlook, recognising that investing in user experiences and enhanced accessibility are not a one-off exercise, but requires ongoing support will ensure websites remain a best practice.

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However, while tailored consultancy is the way forward, many digital agencies are not fully aware of digital accessibility requirements themselves. Further education is required to support them in ensuring compliance with enhanced EU accessibility standards, due to come into force in June 2025 as part of the European Accessibility Act. In this regard, there is also a need to incentivise businesses to understand the opportunities that arise from improving digital accessibility, especially among smaller businesses and those in developing countries. Otherwise, their lack of financial resources and time will detract from their ability to remain competitive, while their exclusion from regulatory measures will inadvertently create larger divides in digital functionalities.

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Nevertheless, the emergence of specialised groups with accessibility requirements, particularly among American travellers, presents a compelling opportunity for businesses that are able to meet these complex and diverse needs. As such, there is a role for DMOs to play in providing strategic website development advice, enabling external technical support and connecting SMEs with dedicated travel agents that focus on inclusive travel opportunities.