OECD urges APEC economies to close tourism AI gaps as adoption accelerates

Asia-Pacific economies, including the Philippines, need more targeted policies to harness artificial intelligence (AI) in tourism as small businesses risk being left behind by the technology’s rapid adoption, according to the Paris-based Organization for Economic Cooperation and Development (OECD).

In a report on Wednesday, Sept. 9, titled “Artificial Intelligence and tourism in APEC economies: Boosting innovation and enhancing sustainability,” OECD said dedicated AI strategies for tourism remain rare across Asia-Pacific Economic Cooperation (APEC) economies despite the growing prevalence of broader national frameworks.

The Philippines, for instance, has its economy-wide National AI Strategy Roadmap 2.0, which focuses on developing talent, supporting AI startups, and adopting the technology in government and industry, with an emphasis on ethics and data security.

However, OECD said broader AI frameworks need to translate into practical guidance and support tailored to tourism, a highly fragmented industry dominated by small and medium enterprises (SMEs) with varying levels of digital readiness.

OECD identified six priority areas for APEC policymakers: raising awareness of AI’s opportunities and risks; improving tourism data governance and business intelligence; supporting AI uptake by tourism SMEs; developing workforce capacity; enhancing trust, transparency, and ethical AI implementation; and empowering destinations and destination management organizations (DMOs) as AI agents for cooperation.

For SMEs in particular, OECD called for targeted support to overcome financial, technical, and capacity constraints that could widen the digital divide between small tourism businesses and larger firms.

Possible measures include incorporating AI training into existing SME support programs, providing access to affordable or open-source AI tools and pooled resources, offering legal and compliance guidance, and helping businesses assess their readiness to adopt the technology.

The Philippines’ Ctrl+Biz Program was cited as one example of efforts already undertaken in the region, having provided webinars and resources to improve the digital competencies of tourism SMEs during the Covid-19 pandemic.

OECD also highlighted the Philippines’ deployment of TourISTA 2.0, a web and mobile application that provides real-time tourist arrival statistics and data visualization for planners, as an example of improving the availability of tourism data.

Still, OECD stressed that a stronger data foundation is necessary for AI to work effectively in tourism, recommending investments in data quality, digital infrastructure, and digital security, alongside stronger data governance.

Poor or biased data could produce inaccurate AI outputs and contribute to algorithmic bias, hallucinations, and market distortions, while fake reviews, properties, and other manipulated content could mislead travelers and undermine trust in digital platforms.

OECD likewise recommended sector-specific guidance and learning tools, such as AI-readiness toolkits, workshops, literacy boot camps, pilot projects, and public-private partnerships (PPPs) to help tourism stakeholders understand both the benefits and risks of the technology.

AI is already being deployed across the tourism value chain to personalize visitor experiences, automate customer service, improve forecasting, manage visitor flows, and optimize operations and revenue management.

It can also support broader tourism goals such as reducing seasonality, improving accessibility, strengthening crisis preparedness, preserving cultural heritage, and making resource use more efficient.

“AI can support data-driven decisions in critical areas such as visitor flow management, sustainability monitoring, and demand forecasting, which are essential for addressing overtourism, seasonality, and resource constraints,” the report said.

However, OECD warned that wider AI adoption brings risks ranging from misinformation and fake reviews to privacy and cybersecurity concerns, intellectual property (IP) issues, workforce disruption, and the technology’s environmental footprint.

Agentic AI, which can autonomously make decisions and carry out transactions, could also disrupt tourism distribution models by enabling direct bookings with suppliers or further strengthening dominant platforms, potentially making it harder for individual businesses, particularly SMEs, to maintain visibility and access customer data.

OECD said these risks make responsible governance critical as AI adoption expands, recommending measures to improve transparency and trust, including labeling AI-generated tourism content, assessing potentially unfair outcomes from AI-powered services, and creating controlled environments where new applications can be tested.

The report said AI’s benefits for tourism are not automatic, requiring a coordinated and evidence-based approach to ensure that businesses, workers, destinations, and travelers can share in the gains from the technology.

— with reporting from Danielle T. Bayani