The Potential of AR/VR Technology to Promote Tourism

Tourism offices worldwide, both those run by the government and those organized by the private sector, have long used digital tools, from websites to social media, to attract visitors. Through videos and photographs, as well as first-hand accounts, these tools give potential travelers sneak peeks at destinations, allowing them to have more accurate expectations of destination’s landmarks, attractions, and infrastructure. As augmented and virtual reality (AR/VR) devices become increasingly popular, AR/VR content offers an unprecedented opportunity to attract tourism in the future. By promoting the creation of AR/VR-ready content, tourism offices and related organizations can both encourage tourism to their destinations and find new revenue streams that can help conserve vital infrastructure, such as national parks.

AR/VR tours provide a level of immersion and detail that significantly surpass other types of media content in how they impact consumers. When watching a video or looking at a photo, the user is a passive actor, having little to no control over the experience. AR/VR content, on the other hand, tends to give users agency and the ability to “move” around designated areas. This gives users more rewarding experiences that they are more likely to remember. The tourism industry is aware of this potential and has begun incorporating AR/VR content into its marketing strategies, especially as the pandemic has increased the adoption of digital and contactless tools such as virtual tours.

Governments have experienced early success with the use of AR/VR in promoting tourism. For example, during the 2022 European Union Open House in Washington, D.C., different embassies, such as the Slovakian and the Danish embassies, used VR devices to exhibit unique features of their countries, such as natural landmarks, with the latter showcasing the experience of biking in Copenhagen.

Furthermore, there is growing demand for these types of experiences from consumers. A survey conducted by Tourism Australia found that 20 percent of consumers who own a VR headset have used it to select holiday destinations, and 25 percent expect to do so in the future. Amongst other benefits, consumers report that VR content allows them to “get a feel of the destination and to preview the experiences on offer, assisting with managing expectations.” Additionally, a survey conducted by Statista in Germany reported that amongst the surveyed Internet users, 62 percent were open to using the technology to determine their next travel destination, but half of those individuals would only do so if the content was free.

Government agencies in the United States that rely on tourism, such as state and federal parks and recreation departments, should explore the benefits of incorporating AR/VR technology to foster tourism. As the post-pandemic demand for tourism ramps up, these agencies should leverage the recent growth in the number of AR/VR devices in the United States and foster the creation of AR/VR-ready content promoting cities, historical landmarks, or national parks as a method of attracting domestic tourists. VR-ready 360-degree videos or immersive experiences, in which users simply observe their environment, rather than interact with it, can provide a budget-friendly method that allows them to offer the content for free.

Additionally, state and federal agencies can develop more complex and costly VR experiences in which the user actively participates in the virtual environment under a revenue-sharing or licensing agreement that allows the agencies to generate a revenue stream that is not dependent on seasonality and targets an expanded customer base, as the content can be enjoyed by users around the globe. This model could be beneficial for locations and landmarks that have seasonal visitors, such as some national parks, as it could create additional revenue streams from tourists who cannot be physically present at the location or may otherwise find trips to the Grand Canyon or similar destinations cost-prohibitive.

AR tools can also enhance onsite tourism offerings by providing extra content, such as historical re-enactments of conflicts, digital images of buildings that no longer exist, or contextual information for visitors about what they are seeing.

Finally, AR can also help make tourism more inclusive. An AR-based app that feeds information in different languages—like physical information panels already do—can open doors for non-English speakers to visit more historical landmarks or museums. These apps can also provide virtual tours for deaf or hard-of-hearing individuals, providing an alternative to the usual guided tours that emphasize visual storytelling tools.

The Biden administration has already expressed interest in implementing digital planning and exploration tools in agencies such as the National Park Service, and these early examples of success suggest that such a strategy would benefit from creating and implementing more AR/VR-based content and services.