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APEC Project Database

Project Title

Artificial Intelligence-Based Solutions for the Optimization of Operational Processes in the Hospitality Industry of APEC Economies

Project Year

2025

Project Number

TWG_102_2025A

Project Session

Session 1

Project Type

Standard

Project Status

Project in Implementation

Project No.

TWG_102_2025A

Project Title

*
Artificial Intelligence-Based Solutions for the Optimization of Operational Processes in the Hospitality Industry of APEC Economies

Project Status

Project in Implementation

Fund Account

*
APEC Support Fund

Sub-fund

ASF: Digital Innovation

Project Year

2025

Project Session

*
Session 1

APEC Funding

191,019

Co-funding Amount

0

Total Project Value

191,019

Sponsoring Forum

*
Tourism Working Group (TWG)

Topics

Tourism; Digital Technology and Innovation; Human Resources Development

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru

Co-Sponsoring Economies

Chile; Indonesia; Japan; Philippines; Russia; Singapore; Viet Nam

Expected Start Date

01/10/2025

Expected Completion Date

31/12/2026

Project Proponent Name 1

Ruth Milagros Garcia Cruz

Job Title 1

Director of Regulations and Tourism Quality

Organization 1

Ministry of Foreign Trade and Tourism

Telephone 1

515131581

Email 1

Project Proponent Name 2

Scarlett Veralucia Abate Correa

Job Title 2

Specialist

Organization 2

Ministry of Foreign Trade and Tourism

Telephone 2

515131561

Email 2

Declaration

Ruth Milagros Garcia Cruz

Project Summary

The APEC Forum recognizes the importance of digital transformation and the adoption of emerging technologies as fundamental pillars to drive regional competitiveness and sustainability. In this context, the tourism sector—particularly the hospitality industry— represents a unique opportunity for technological modernization, the development of human capital with digital skills,and the promotion of public-private partnerships that fosterinnovation and dignified employment.

Data reveals that by 2030, artificial intelligence (AI) is projected to contribute an additional 16% (approximately USD 13 trillion) to the global economy, with at least 70% of companies adopting AI technologies (McKinseyGlobal Institute). Specifically in the tourismsector, 61% of Asia-Pacific leaders consider generative AI a "top priority" by 2025 (Amadeus). This presents APEC’s hospitality industrywith notable opportunities, challenges, and limitations, the full scale ofwhich remains unappreciated and for which our preparedness remains uncertain.

The implementation of AI in hotel operations has the potential to enhance competitiveness through task automation, data analysis, workflow optimization, experience personalization, security, sustainability, and more. However,this transformation raisesconcerns about the future of the workforce, particularly its impact on vulnerable populations—such as women and youth— who hold operational roles in the industryand could be disproportionately affected.

Faced with this scenario, this project aims to address two critical challenges: (1) AI-driven optimization of hotel operations (front desk, reservations, energy management, etc.),and (2) the development of public policyrecommendations to enableresponsible technological adoption while safeguarding human capital.

Relevance

Region

On the Importance of Tourismfor the Asia-Pacific and AmericasRegion: In 2023, the region received a total of 437.8 million international tourist arrivals, according to UN Tourism. The World Travel &Tourism Council (WTTC)reports that in 2023, the tourism sectorcontributed $5.11 trillion to the GDP of APEC economies, accounting for $ 38.92 trillion and more than 211 million jobs by 2034. On the Massive Deployment of AI as an Opportunity: Data from a Microsoft and IDC study indicate that 71% of surveyed businesses are already using AI tools, and for every dollara company investsin AI, it yields an average returnof 3.5 times. However, McKinsey warns that automation could displace some workers, with around 30% of tasks in 60% of all occupations potentially being automated. By 2030, up to 400 million workers (approximately 15% of the global workforce) may need to switch occupations. This poses a significant risk to jobs for vulnerable populations. On the Importance of Tourism for Employment of Vulnerable Groups: Tourism is one of the sectors that generates the most employment opportunities for vulnerable groups. According to UN Tourism,women represent 54% of the sector’s workforce, and youth account for 15% (WTTC). Hospitality is the leading employer for women,with 52% of female employment in 2019 (WTTC).Additionally, in regions like Asia-Pacific and the Americas, women have a greater presence in tourism than in other economic sectors. The project is relevant to all APEC economies, particularly for economies where tourism significantly contributes to GDP, generates employment, and diversifies the economy, such as Thailand, Malaysia, Vietnam, the Philippines, Peru, Indonesia, Mexico,New Zealand, and Chile. Leveraging the multiple advantages of promoting AI use in economic sectors like tourism, can drive greater economic growth, productivity, efficiency, innovation, technological development, competitiveness, sustainability, investment attraction, and reduced inequalities. However, to fully harness these benefits, governments must implement policies that encourage responsible AI adoption, invest in education and training, and minimize the impact on jobs displaced by automation.


Eligibility and Fund Priorities

The project meets the eligibility criteria for the funding priorities of the Sub-Fund on Digital Innovation, as it will contribute to promoting digital innovation and transformation in APEC economies, including fostering the transition towarda global economyand pursuing sustainable and inclusive prosperity in the Asia-Pacific region. Also, the project contribute the following key areas of the Internetand Digital EconomyRoadmap: (i) Promotinginnovation and adoptionof enabling technologies and services; and (ii) Facilitating the free flow of information and data for thedevelopment of the Internet and Digital Economy,while respecting applicable domestic laws and regulations, regarding the commercial services including in the tourismsector.

Furthermore, the project is aligned to the following objectives of the Cross-Border E-Commerce Facilitation Framework: (i) Encouraging and facilitating greater participation of businesses in

global commerce, in particular MSMEs; and (ii) Enhancing cooperation between public and private sectors.


Capacity Building

The project makes a significant contribution to capacity building in APEC economies by enhancing the digital skills of human capital in the hotel sector. Through the assessment of technological gaps and the identification of labor reskilling opportunities, relevant information is generated to improve employment prospects, taking into account the need for technology adoption by groupswith untapped economicpotential, such as women and youth. Additionally, the catalog of AI solutions and regional case studies will serve as practical tools for hotels— especially SMEs—to adopt scalable technologies, thereby improving their productivity and competitiveness in the global market.


Furthermore, the projectfosters multisectoral cooperation and knowledge exchangeamong key stakeholders, including governments, businesses, academia, and international organizations. The participatory workshop and APEC Publication facilitate the transfer of best practices and differentiated public policies, taking into account the technological development level of each APEC economy.This enables less digitally advancedeconomies to learnfrom the experiences of more advancedeconomies, while the latter refinetheir strategies with sustainable approaches.

Objectives

The project aims to promote the adoption of new and emerging technologies to stimulate growth and digital transformation among businesses linked to the hospitality sector in APEC economies, fostering qualitygrowth that includesmicro, small, and medium-sized enterprises (MSMEs). Additionally, it seeks to share best practices and address existingchallenges so that governments can develop policiesaimed at buildinga skilled workforcethat includes vulnerable populations, thereby leveraging the advantages of artificial intelligence in the hospitality industry.

Alignment

APEC

The purpose of this project is to contribute to positioning the APEC region as a leader in innovation and at the forefront of digital transformation. It aims to enhance the competitiveness of its tourist destinations by providing hotel businesses with AI-based solutions to improve operational efficiency. This can result in better tourist experiences, resource optimization, increasedmarket competitiveness, and sustainability. A strengthened hospitality industry could benefit APEC economies through greater tourist attraction, higher tourism revenue, reduced energy consumption, decreased waste and carbon footprint, and the development of policies to protect jobs for vulnerable populations in the sector.


In this regard, the project alignsprimarily with the "APEC Putrajaya Vision 2040" in the areas of

i) Innovation and Digitalization and ii) Strong,Balanced, Secure, Sustainable, and Inclusive Growth. Furthermore, this project supportstwo of APEC 2025 Host Economy’s key priorities: Innovate and Connect. By promoting the adoption of AI tools, it contributes to enhancing competitiveness through digitalinnovation. At the same time, it helpsclose the digitaldivide across the Asia-Pacific region and addressesthe challenges posed by emergingtechnologies, such as artificial intelligence.


Forum

This project is aligned to priority 1 of the TWG 2025 Work Plan: Innovation through the promotion of digitalplatforms and Artificial Intelligence in the tourism industry; also contribute to the ECOTECH Medium-Term Priority: “Harnessing for the Future & supporting innovation”. Finally, it will contribute directlyto the implementation of the t APEC Internet and Digital

Roadmap.

Beneficiaries and Outputs

Output


1) Preliminary Research Report

The preliminary research report will provide a comprehensive analysis of how artificial intelligence (AI) can optimize key processes in the hotel industry across the APEC region, assessing both opportunities and challenges. To achieve this, information will be gathered through a review of academic literature and sectoral reports, interviews with industry experts (including hotel managers, technology developers, and public policy makers), AI market research, and analysis of representative case studies from APEC economies. Additionally, publicly available data from organizations such as UN Tourism, ILO, and the APEC Forumwill be used tocontextualize the socioeconomic impact and existingtechnological gaps between developed and developing economies within the region.

The report will be approximately 30 pages long (excluding annexes) and follow a logical and practical structure, beginning with an introduction that frames the digital transformation in APEC and its impacton the hotel sector. The first section will analyze key operational processes (bookings, front desk, energymanagement, others), identifying inefficiencies and associated costs. A second section will present a catalog of applicable AI technologies, supported by regional success cases. A third section will address the impact on human capital,examining risks of labor displacement and opportunities for reskilling. Finally, the document will include a summary of existing public policies and preliminary recommendations, supplemented with appendices containing comparative data and lists of technology providers.

This initial study primarily aims to define the research scope and establish a conceptual foundation for deeper futureanalysis. The preliminary research will conclude in April 2026.


2) 2-Day In-Person Workshop

The General Information Circular (GIC) prior to the workshop will include an executive summary of the main findings from the Preliminary research report. Additionally, this documentwill be shared with APEC economies as an annexto the GIC.


The primary objective of the workshop is to disseminate the key findings of the preliminary research report and facilitate a multisectoral dialogue to prioritize challenges and solutions in adopting AI within APEC’shotel industry. The event will bring together hotel managers, technology developers, government officials, academics, and international organizations to analyze AI-based solutions, case studies, discusslabor impacts, and co-create practicalrecommendations (approx. 80 participants). The workshop will feature demonstrations of AI technologies applicable to hospitality, roundtable discussions, and participatory exercises where attendees will develop concrete proposals to address regulatory, and labor competency gaps. Participation will prioritize APEC economies where tourism contributes significantly to GDP and with high labor informality. A proceedings document will be produced to consolidate inputsfor the APEC Publication.


Tentative Workshop Agenda Day 1:

  1. Opening Ceremony
  2. Keynote Address: Key Findings from the Preliminary Research Report 3.Multisectoral Panel: Opportunities and Risks of AI

4.Technology Demonstrations: AI Solutions for Hospitality 5.Thematic Working Sessions

(A pre-workshop survey will assess participants’ baseline knowledge.)


Day 2:

1.Synthesis Presentation: Day 1 Takeaways 2.Participatory Workshop: Deep-Dive into Challenges 3.Participatory Workshop: Drafting Recommendations 4.Closing Ceremony: Reflective Wrap-Up

(A post-workshop survey will evaluate participants’ knowledge gains.)


The participation of all 08 experts throughout the full 2 days of the workshopis essential to achievethe project's objectives. Their continuous presenceensures consistent, high-level guidance and facilitates the progressive development of discussions, from problem identification to the co-creation of solutions. The tentative allocation of roles is as follows:

Day 1:

-5 experts will serve as panelists and moderators in the 'Multisectoral Panel: Opportunities and Risks of AI'.

-3 experts will lead the practical technology demonstrations in the 'Technology Demonstrations: AI Solutions for Hospitality' session.

-All 8 expertswill participate activelyin the 'Thematic Working Sessions' to enrich the debate with their specialized perspectives.


Day 2:

-All 8 expertswill participate in and facilitate the 'Participatory Workshop:Deep- Dive into Challenges' and 'Drafting Recommendations' sessions, guiding attendees in the development of concrete proposals.


The workshop will be held on August 15 and 16, 2026, in the city of Beijing (China) on the margins of APEC SOM 3.


As a main outcome, the preliminary conclusions are expected to be validated. The contributions gatheredwill be incorporated into the APEC Publication.


3) Final Report (APEC Publication)

The APEC Publication will consolidate the preliminary research and workshop findings into a single document specifically targeted at three key groups: policy decision-makers, hotel industrystakeholders, and labor training organizations. Its structure must include at least 50 pages (excluding annexes) with four core sections (without prejudice to the inclusion of additional relevantsections resulting from the research):


1) A catalog of AI solutions applicable to key hotel processes, organized by functional areas (front office, back office, sustainability, among others), level of technological complexity, and representative casesimplemented in APECregion hotels (highlighting adaptations for SMEs), with impact information and lessons learned.


2) Labor impact analysis, identifying positions at highest risk of automation and new emerging positions, with focus on areas with high women and youth participation. This section will incorporate proposals for transforming traditional hotel positions into new roles according to the technological and labor context of APEC economies, plus successful modelsof digital skillsreconversion developed by economies in the region.


3) Differentiated public policy recommendations according to the technological development level of APEC economies (advanced and emerging economies), potentially identifying best practices such as trainingprograms, fiscal incentives, regulatory frameworks, among other proposals highlighted by expertsduring the workshop.


4) Appendices: A directory of regional technology providers with scalable solutions for SMEs,expert interviews (hotel managers, technology developers, government officials, academics and international organizations), identification of new challenges to address for future research, amongothers. Additionally, it will include an executive summary with the main conclusions and recommendations from the research.

The report will be completed by 31 October 2026, and distributed to APEC

economies, tourism ministries and international organizations, aiming to influence domestic policies and regional cooperation agreements.


Outcome

1) The research will strengthen the capabilities of stakeholders through a theoretical-practical approach (literature reviews, expert interviews, and participatory workshops) in key areas such as AI implementation in operational processes (bookings, energy management, customer service), labor impact analysis (role transformation and digital skills development), and evaluation of public policies for technology adoption in APEC economies.

The main stakeholders (hotel managers, technology developers, and policy makers) and other beneficiaries will gain access to updated information about AI applications in the industry, enabling them to identify both opportunities and risks.


2) The research will enhance the region's available information by producing a comprehensive assessment of AI in APEC's hospitality sector, with special emphasis on: reducing technological gaps between developed and emerging economies; optimizing workforce reskilling with gender and age considerations; and designing differentiated public policies for responsible AI adoption.

This initiative will contribute to collective knowledge by compiling and systematizing scattered data, providing policymakers with key inputs to identify effectivelabor-related solutions (such as trainingprograms, fiscal incentives, among others). When distributed to governments, businesses, and training institutions, the research will become a practical tool highlighting AI's role in modernizing the sector and promoting more sustainable and resilient tourism.


Beneficiaries


Direct Beneficiaries:

1) Private Sector

a) Hotel industry companies in APEC economies: They will benefit from identified scalable AI solutions, with a focus on MSMEs, to optimise operational processes, improving their competitiveness, reducing costs, and increasing guest satisfaction.

It is desirable to secure the participation of mid-to-senior-level managers from these companies, particularly from MSMEs. These individuals should possess a minimum of 3 years of experience-making related to technology.


b) Technology companies offering artificial intelligence (AI) solutions: They will be able to adap their products to the real needs of the hotel sector in the APEC region, expanding their market. The project will provide them with insights into unmet demands and opportunities for collaboration with hotels and governments for pilots or large-scale implementations.


Participation is desirable from roles such as Business Development Managers, Product Managers, or Innovation Leads. These participants should have experience in the tourism on hospitality sector and at least 3 years of experience in AI solution design or implementation.


2) Government Entities

a) Tourism sector agencies: They will be able to design evidence-based policies to promote AI adoption, aligned with competitiveness and sustainability objectives.


b) Organisations promoting competitiveness of MSMEs, sustainability and social empowerment: They will find in the report best practices and examples of digital skills training programs, fiscal incentives and regulatory frameworks.


3) Decision-Makers

a) Public policy makers and regulators: They will be able to implement evidence-based policies to support the digital transition of the hotel sector.


Indirect Beneficiaries: Academic and Scientific Sector

a) Researchers and Academics: They will have an updated reference guideline of best practices on AI applied to tourism, based on regional evidence, which will facilitate new interdisciplinary research lines (technology, labor economies, public policies)


b) Students in Tourism and Technology Sectors: They will access case studies and practical recommendations that will enrich their training, preparing them for new emerging roles in the hotel industry.


c) Training Institutions: They will obtain key inputs to modernise their educational programs, ensuring the workforce develops skills aligned with the industry's real needs.


Groups with Untapped Economic Potential: Hotel sector works (women and youth): It will propose professional reconversion paths towards less automatable roles, strengthening training programs in basic and advanced digital skills, considering their employability in the new economy. Additionally, policies will be promoted to ensure their participation in the benefits generated by AI productivity.


Dissemination

Electronic publication of the Final Report of the project is expected to be an APEC electronic publication. The publication will be designedto be attractive and accessible, with a suitable format for electronic distribution and easy download. Peru will translate the APEC Publication into Spanish for dissemination.

-Website: The final projectreport will be hosted on the officialwebsites of APEC and the Ministry of Foreign Trade and Tourism of Peru, providinga reliable and widely recognized platform for the dissemination of the results.

-Social media: Social media channels such as X, Facebook, LinkedIn and Instagram of the Ministry of Foreign Trade and Tourism of Peru will be used to promote and disseminate the project's results. Excerpts and highlighted summaries from the APEC Publication will be published, along with links to the website for access to the full version of the report. Social media platforms will help reach a wider audienceand generate interestin the project's results.


-Targeted dissemination to the project's intended audience: The final resultsof the project will be sent by e-mailto the provincial governments involvedin the initiative.

- Researchers and academics: Reportsand documents will be sharedwith this community to encourage further research and knowledge Exchange.

-Additionally, a workshop will be held in Peru to disseminate the project's results at the

domestic level.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

To achieve the project's outcomes, collaboration with the following groupsand partnerships will benecessary:

  1. Digital Economy Steering Group (DESG).
  2. Policy Partnership on Science, Technology, and Innovation (PPSTI)
  3. Policy Partnership on Women and the Economy (PPWE).
  4. Small and Medium Enterprises Working Group (SMEWG).


Additionally, the project is linked to previous APEC publications, such as:

  1. Workshop on Sharing Experiences and Best Practices on How APEC Economies’ Qualifications Frameworks are Coping with the Disruptive Impact of EmergingAI Technologies - Compendium (2024).
  2. Policies and Tools for Improving DigitalEconomy and Competition in Digital Markets:Current Issues (2024) Learning Workshop on Artificial Intelligence: Experiences of APEC Economies (2022).

Sustainability

This project will enable the generation, sharing, and strengthening of knowledge, skills, and capabilities among key stakeholders in the APEC economies' tourism ecosystem, including government officials, hotel businesses, training institutions, and decision-makers. Through evidence-based public policies, it will facilitate the adoption of artificial intelligence (AI) in the hospitality sector, drivingoperational efficiency, competitiveness, and an easydigital transition for workers. The results will establish the foundation for other economic sectors undergoing digital transformation to replicate these solutions in their respective industries, with mechanisms to ensure continuous updating of the knowledge generated. In the long term, the project will help positionAPEC as a regional benchmarkin smart tourismand sustainable job creation.

Additionally, a workshopwill be held in Peru to disseminate the project's resultsat the economy level among involved stakeholders from the public sector, private industry, and academia.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Are there any supporting document attached?

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Project No.
Project Title
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Project Session
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Co-funding Amount
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Project Proponent Name 1
Job Title 1
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Project Proponent Name 2
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Declaration
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Gender
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Sustainability
Direct Labour
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