How is the Travel and Tourism Competitiveness Index (TTCI) calculated?

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How is the Travel and Tourism Competitiveness Index (TTCI) calculated?

The Travel and Tourism Competitiveness Index (TTCI) is calculated by the World Economic Forum (WEF) to assess the competitiveness of countries in the travel and tourism sector. The index is based on a combination of quantitative data and survey responses from industry experts and business leaders.

The calculation of TTCI involves several steps. Firstly, the WEF collects data from various sources, including international organizations, national tourism boards, and private sector entities, to gather quantitative indicators related to the travel and tourism sector. These indicators cover areas such as infrastructure, natural and cultural resources, health and hygiene, safety and security, business environment, and human resources.

Secondly, the WEF conducts a survey called the Executive Opinion Survey, where it seeks the opinions of industry experts and business leaders from different countries. The survey asks them to rate the importance of various factors for the development of the travel and tourism sector in each country. These factors include policy regulations, business environment, infrastructure, and natural and cultural resources, among others.

Once the data and survey responses are collected, the WEF applies a weighted average approach to calculate the TTCI. The weights assigned to different indicators and survey responses are determined through a statistical analysis that considers the correlation between these factors and the overall competitiveness of the travel and tourism sector.

The final TTCI score is presented on a scale of 1 to 7, with 7 indicating the highest level of competitiveness. This score allows for comparisons between countries and provides insights into their strengths and weaknesses in the travel and tourism sector. The TTCI is updated periodically to reflect changes in the global travel and tourism landscape and to provide up-to-date information for policymakers, businesses, and other stakeholders in the industry.