Gone are the days when booking tickets meant standing in long queues, whether for flights or trains. The digital revolution has transformed industries across the board, enabling unprecedented growth and revenue opportunities that were once unimaginable. With the power of technology, sectors have leaped forward, embracing digital solutions that not only streamline operations but also enhance the overall consumer experience.

The World Economic Forum’s Digital Transformation Initiative (DTI) estimates that digitalization in aviation, travel, and tourism from 2016 to 2025 could generate up to $305 billion in industry value through profitability gains, shift $100 billion from traditional players to new competitors, and create $700 billion in benefits for customers and society. This underscores the transformative impact of digital innovation on tourism, reshaping how people experience different cultures. On World Tourism Day, ObserveNow Media spoke with industry experts to explore how digital transformation is boosting tourism and its role in promoting global peace.

In an increasingly interconnected world, tourism has emerged as a potent tool for soft power, enabling nations to foster peaceful international relations and promote cross-cultural exchange. Beyond economic benefits, tourism plays a vital role in bridging cultural divides, fostering mutual understanding, and enhancing diplomatic ties.

Mukesh Kumar Meshram, IAS, Principal Secretary, Tourism & Culture Department, Government of Uttar Pradesh highlighted “Tourism is a crucial instrument of soft power diplomacy that promotes cultural exchanges, fosters economic collaboration, and enhances a nation’s global image. By attracting visitors and encouraging interpersonal connections, tourism helps break down stereotypes, create goodwill, and establish a favorable international reputation. Successful examples of tourism diplomacy include Thailand, Spain, and Canada, which have used tourism to showcase their culture, attract foreign investment, and strengthen diplomatic ties.”

Echoing the same Deep Banka, COO & Business Head, Zostel stated “India’s efforts to promote its rich art and culture through initiatives like the Festivals of India, serve as powerful diplomatic tools. By showcasing music, dance, food, and folk arts, these events cultivate lasting impressions on foreign visitors, enhancing India’s image globally. At Zostel, we often see travellers eagerly engaging in local festivals, arts, and workshops, which contribute to a broader cultural dialogue. This exchange, through the lens of tourism, is instrumental in fostering peaceful international relations and cultural diplomacy in an era of rising geopolitical tensions.”

Incorporating advanced technologies like Virtual Reality (VR) and Artificial Intelligence (AI) is transforming the travel industry. VR enables potential travellers to explore destinations virtually, from historical sites to cultural festivals, fostering cultural awareness before they even leave home. Meanwhile, AI personalised travel experiences by offering tailored recommendations, language translation, and real-time local insights.

“While we can already see the effects of the digital economy enabling people to work from their dream destination; we are increasingly seeing “digital nomads” looking for long term accommodations as it is now possible for them to stay on their vacation for longer” said Yashowardhan Singh, Managing Partner, Oasis India Camps.

Virtual reality enables people to explore destinations and cultural landmarks from their homes, breaking physical and financial barriers. This increases exposure to different cultures and fosters a deeper understanding and appreciation, even without travelling. Through VR, users can engage with authentic cultural experiences, such as attending festivals, visiting historical sites, or interacting with local traditions. This virtual immersion cultivates empathy and interest in other nations, acting as a tool for soft diplomacy, further added Yashowardhan.

According to Statista, the projected share of AI-driven revenue in the travel sector has reached 32% for 2024. AI chatbots have become a common feature in the tourism industry, gaining popularity as travel service providers leverage them for customer support. While they may not be able to address every query, these AI-powered chatbots help lighten the workload of travel agents, enabling them to concentrate on more complex issues.

Commenting on the same Jatinder Paul Singh, CEO and Co-founder, Viacation stated “Innovations like VR & AI, is revolutionising global tourism by fostering cross-cultural exchange and strengthening diplomatic relations. VR provides immersive experiences that enable users to explore diverse cultures and historical landmarks from anywhere, while virtual tours enhance accessibility to various destinations.”

AI enriches the travel experience by offering personalised recommendations and facilitating language translation, thus breaking down barriers and encouraging meaningful interactions between tourists and locals, added Jatinder.

“We actively foster cultural exchange by creating spaces where travellers can engage with local traditions and communities. For instance, guests at Seclude Marari experience the traditional Kerala way of life, while those in Shimla enjoy the region’s colonial charm blended with Himachali culture. AI further enhances these interactions by personalising guest experiences, curating itineraries that introduce them to local customs and heritage. Through these practices, we aim to drive meaningful connections, encouraging tourism as a bridge between cultures, while strengthening diplomatic and cultural ties across borders” quoted Ramit Sethi, Founder, Seclude Hotels Home Style.

As global tourism continues to grow, the need for responsible tourism practices has become more pressing. Digital platforms play a crucial role in supporting responsible tourism initiatives, enabling travellers to engage with local cultures in a respectful and meaningful way. These platforms provide information on sustainable travel practices, promote community-based tourism, and connect tourists with local guides and artisans, ensuring that the economic benefits of tourism are equitably distributed.

Shedding light on the same Sandeep Singh, Managing Director, Rubystone Hospitality emphasised “Digital platforms can facilitate more inclusive and peaceful interactions between tourists and local populations, particularly in locations with sensitive histories through the implementation of responsible tourism initiatives. To ensure polite and knowledgeable behavior, these platforms may educate visitors about historical settings, customs, and traditions before they come. By providing perspectives on the political and historical sensitivities of the area, these platforms encourage a thoughtful approach to tourism that stays clear of conflict or miscommunication. Digital tools can also draw attention to locally-led tourism experiences that give visitors a truly local experience while also benefiting the local economy. This method promotes inclusivity and respect for one another, making both the guest and the host feel important. By prioritising our common humanity above contentious matters, such programs can foster peace in politically delicate areas.”

A report by Statista highlighted that when surveyed in 2022, over 80 percent of global travellers said that sustainable tourism was important to them and that they were willing to adopt sustainable travel incentives, something that has led to the ecotourism industry achieving a global market size of 172.4 billion U.S. dollars.

“Responsible tourism, enhanced by digital platforms, fosters mindful and inclusive interactions between tourists and local cultures. At The Fern Hotels & Resorts, our eco-conscious approach encourages guests to engage with local communities in environmentally respectful and culturally sensitive ways. Digital tools can amplify these efforts by providing pre-arrival education on local customs and sustainable practices. In areas with sensitive historical contexts, these platforms guide tourists in adopting behaviours that honour local narratives, ensuring their presence contributes to peace rather than conflict. Our commitment to community involvement and waste management promotes responsible engagement, aligning with the values of sustainability and harmony” underscored Suhail Kannampilly, Managing Director, The Fern Hotels & Resorts.

To equip the full potential of tourism as a tool for global peace, governments, and tourism boards must collaborate closely with technology companies. This collaboration can leverage data-driven insights to predict and mitigate potential cultural conflicts, ensuring that tourism contributes positively to international relations.

“Data is driving impactful insights today, it is the source to understand how the world works around us. Governments and tourism boards need to collaborate with tech companies to have tools like predictive analytics to forecast footfall in an important tourism hotspot. It can help analyse traveller behaviour, social dynamics, political climates etc to ensure that there is global stability” said Deepak Meena, Co-founder and CEO, Flyzy.

Digital tools can also help in crowd monitoring tools helping highlight dispute prone areas and build policies accordingly. Data can also help in crafting travel campaigns that promote cultural sensitivity, inclusive tourism etc that promote mutual harmony, further added Meena.

Sandeep Arora, Director, Brightsun Travel, India highlighted “ Governments and tourism boards can work with tech companies to analyse visitor demographics and behaviours, identifying areas of cultural sensitivity and take proactive measures. Tech firms can develop tools for monitoring social media sentiment, helping governments understand the public sentiment and address concerns. Using AI, they can develop models to assess risks based on past data, guiding strategies to manage tourist numbers in sensitive areas. By analysing local events and busy tourist times, governments can help avoid overcrowding in sensitive regions, reducing conflict risks.”

“Partnerships with tech companies such as MakeMyTrip and EaseMyTrip have already enabled Uttar Pradesh Tourism to improve its promotion of destinations and provide culturally sensitive experiences to visitors. Tools like Google Maps and AI-driven translation services further reduce barriers related to language and logistics, making travel more accessible and enjoyable. In addition, social media sentiment analysis offers real-time insights into public perceptions, allowing governments to adjust their tourism strategies accordingly. Such proactive measures ensure that tourism remains a powerful force for positive cross-cultural engagement, promoting global peace through deeper understanding and respectful interaction” concluded Meshram.

As the world grapples with geopolitical tensions and cultural divides, tourism stands out as a ray of hope, offering a unique platform for peaceful international relations and cross-cultural exchange. The digital economy, with its innovations in VR and AI, provides new opportunities to transform the global tourism landscape, promoting responsible and meaningful interactions between tourists and local cultures. Experts expressed that uplifting data-driven insights and fostering collaboration between governments, tourism boards, and tech companies, we can ensure that tourism contributes to global peace and stability, paving the way for a more connected and harmonious world.